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An inventory model with trade-credit policy and variable deterioration for fixed lifetime products

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  • Biswajit Sarkar
  • Sharmila Saren
  • Leopoldo Cárdenas-Barrón

Abstract

The purpose of this study is two-fold. The first is to consider supplier’s and retailer’s trade-credit policy for fixed lifetime products and the second is to extend Mahata’s 2012 model with time varying deterioration where Mahata (Expert Syst Appl 39(3):3537–3550, 2012 ) wrote exponential deterioration but actually he considered constant deterioration. We assume that the suppliers offer full trade-credit to retailers but retailers offer partial trade-credit to their customers. Some numerical examples along with graphical representations are given to illustrate the model. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Biswajit Sarkar & Sharmila Saren & Leopoldo Cárdenas-Barrón, 2015. "An inventory model with trade-credit policy and variable deterioration for fixed lifetime products," Annals of Operations Research, Springer, vol. 229(1), pages 677-702, June.
    • Handle: RePEc:spr:annopr:v:229:y:2015:i:1:p:677-702:10.1007/s10479-014-1745-9
    DOI: 10.1007/s10479-014-1745-9
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    9. Lopez Alvarez, Jose A. & Buijs, Paul & Kilic, Onur A. & Vis, Iris F.A., 2020. "An inventory control policy for liquefied natural gas as a transportation fuel," Omega, Elsevier, vol. 90(C).
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    14. Wu, Jiang & Al-khateeb, Faisal B. & Teng, Jinn-Tsair & Cárdenas-Barrón, Leopoldo Eduardo, 2016. "Inventory models for deteriorating items with maximum lifetime under downstream partial trade credits to credit-risk customers by discounted cash-flow analysis," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 105-115.
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    16. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    17. Shayan Tavakoli & Ata Allah Taleizadeh, 2017. "An EOQ model for decaying item with full advanced payment and conditional discount," Annals of Operations Research, Springer, vol. 259(1), pages 415-436, December.
    18. Ruihai Li & Jinn-Tsair Teng & Yingfei Zheng, 2019. "Optimal credit term, order quantity and selling price for perishable products when demand depends on selling price, expiration date, and credit period," Annals of Operations Research, Springer, vol. 280(1), pages 377-405, September.
    19. Alaa Fouad Momena & Rakibul Haque & Mostafijur Rahaman & Sankar Prasad Mondal, 2023. "A Two-Storage Inventory Model with Trade Credit Policy and Time-Varying Holding Cost under Quantity Discounts," Logistics, MDPI, vol. 7(4), pages 1-25, October.
    20. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Goh, Mark & Shaikh, Ali Akbar, 2018. "Joint pricing and inventory model for deteriorating items with expiration dates and partial backlogging under two-level partial trade credits in supply chain," International Journal of Production Economics, Elsevier, vol. 200(C), pages 16-36.
    21. Naoufel Cheikhrouhou & Biswajit Sarkar & Baishakhi Ganguly & Asif Iqbal Malik & Rafael Batista & Young Hae Lee, 2018. "Optimization of sample size and order size in an inventory model with quality inspection and return of defective items," Annals of Operations Research, Springer, vol. 271(2), pages 445-467, December.
    22. Juanjuan Qin & Aina Zhang & Liangjie Xia & Mengqi Liu, 2017. "Retail Order-Taking Strategies Under Competing Trade Credit Policies With Varying Demands," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-17, February.
    23. Tai, Allen H. & Xie, Yue & He, Wanhua & Ching, Wai-Ki, 2019. "Joint inspection and inventory control for deteriorating items with random maximum lifetime," International Journal of Production Economics, Elsevier, vol. 207(C), pages 144-162.
    24. Ata Allah Taleizadeh & Shayan Tavakoli & Luis Augusto San-José, 2018. "A lot sizing model with advance payment and planned backordering," Annals of Operations Research, Springer, vol. 271(2), pages 1001-1022, December.
    25. Ata Allah Taleizadeh & Sara Tavassoli & Arijit Bhattacharya, 2020. "Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering," Annals of Operations Research, Springer, vol. 287(1), pages 403-437, April.

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