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Supply chain inventory model for deteriorating items under two-level credit policy in declining market

Author

Listed:
  • Omprakash K. Gupta
  • Nita H. Shah
  • Kunal T. Shukla

Abstract

In this paper, an attempt is made to derive the retailer's inventory policy for deteriorating items under two levels of trade credit in declining market in supply chain environment. It is assumed that the retailer is a powerful decision maker. Supplier offers credit period to the retailer which in turn, partially offered to the customers by the retailer. The objective is to minimise the total cost of the retailer's inventory system with respect to the cycle time. An easy-to-use algorithm is given to decide the best policy. The numerical examples are given to illustrate the developed model and managerial issues are derived.

Suggested Citation

  • Omprakash K. Gupta & Nita H. Shah & Kunal T. Shukla, 2011. "Supply chain inventory model for deteriorating items under two-level credit policy in declining market," International Journal of Applied Management Science, Inderscience Enterprises Ltd, vol. 3(2), pages 143-173.
    • Handle: RePEc:ids:injams:v:3:y:2011:i:2:p:143-173
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    Cited by:

    1. Shah, Nita H. & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "Retailer’s decision for ordering and credit policies for deteriorating items when a supplier offers order-linked credit period or cash discount," Applied Mathematics and Computation, Elsevier, vol. 259(C), pages 569-578.

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