IDEAS home Printed from https://ideas.repec.org/a/spr/operea/v20y2020i3d10.1007_s12351-018-0391-4.html
   My bibliography  Save this article

Analyzing an inventory model with two-level trade credit period including the effect of customers’ credit on the demand function using q-fuzzy number

Author

Listed:
  • Ateka Banu

    (Vidyasagar University)

  • Shyamal Kumar Mondal

    (Vidyasagar University)

Abstract

In this paper, an EOQ model for deteriorating items has been developed in infinite time horizon including two-level delay in payment in which one delay in payment (M) is offered to the retailer by the supplier and the another delay in payment (N) is offered by the retailer to all customers. Since the real business world is full of uncertainties and the supplier has to face different problems with the retailer, hence there may exist uncertainties in the credit period which is offered by the supplier to the retailer. Again, uncertainties may be linear or non-linear type. Till now, there is no standard fuzzy number by which linearity and non-linearity can be explored simultaneously. In this respect, a new type of fuzzy number known as q-fuzzy number has been introduced to consider linearity and non-linearity together and this is the novelty of the paper. On the other hand, the retailer intends to offer a credit period to all customers to give rise the demand of the items. So, here demand function depends on credit period and duration of offering the credit period. The aim of the retailer is that how much credit period be benefited to get maximum profit. Therefore the purpose of this model is to determine the optimal credit length for the customers and optimal replenishment cycle length. Also, the model has been discussed considering the situation when the retailer offers no credit to the customers. Then some theoretical results and an algorithm for defuzzification have been developed. Finally, some numerical examples have been carried out to interpret the model and a sensitivity analysis of the optimal solution has been provided with respect to some parameters.

Suggested Citation

  • Ateka Banu & Shyamal Kumar Mondal, 2020. "Analyzing an inventory model with two-level trade credit period including the effect of customers’ credit on the demand function using q-fuzzy number," Operational Research, Springer, vol. 20(3), pages 1559-1587, September.
    • Handle: RePEc:spr:operea:v:20:y:2020:i:3:d:10.1007_s12351-018-0391-4
    DOI: 10.1007/s12351-018-0391-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12351-018-0391-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12351-018-0391-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nima Kazemi & Salwa Hanim Abdul-Rashid & Ehsan Shekarian & Eleonora Bottani & Roberto Montanari, 2016. "A fuzzy lot-sizing problem with two-stage composite human learning," International Journal of Production Research, Taylor & Francis Journals, vol. 54(16), pages 5010-5025, August.
    2. Seong Whan Shinn & Hwang, Hark & Sung, Soo Park, 1996. "Joint price and lot size determination under conditions of permissible delay in payments and quantity discounts for freight cost," European Journal of Operational Research, Elsevier, vol. 91(3), pages 528-542, June.
    3. Taleizadeh, Ata Allah, 2014. "An EOQ model with partial backordering and advance payments for an evaporating item," International Journal of Production Economics, Elsevier, vol. 155(C), pages 185-193.
    4. Ehsan Shekarian & Mohamad Y. Jaber & Nima Kazemi & Ehsan Ehsani, 2014. "A fuzzified version of the economic production quantity (EPQ) model with backorders and rework for a single-stage system," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 8(3), pages 291-324.
    5. 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.
    6. Wu, Jiang & Chan, Ya-Lan, 2014. "Lot-sizing policies for deteriorating items with expiration dates and partial trade credit to credit-risk customers," International Journal of Production Economics, Elsevier, vol. 155(C), pages 292-301.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. G. Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "A Sustainable Green Inventory System with Novel Eco-Friendly Demand Incorporating Partial Backlogging under Fuzziness," Sustainability, MDPI, vol. 14(15), pages 1-20, July.
    2. Subrata Panja & Shyamal Kumar Mondal, 2023. "Sustainable production inventory management through bi-level greening performance in a three-echelon supply chain," Operational Research, Springer, vol. 23(1), pages 1-55, March.
    3. Ata Allah Taleizadeh & Leila Aliabadi & Park Thaichon, 2022. "A sustainable inventory system with price-sensitive demand and carbon emissions under partial trade credit and partial backordering," Operational Research, Springer, vol. 22(4), pages 4471-4516, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Ruihai & Skouri, Konstantina & Teng, Jinn-Tsair & Yang, Wen-Goang, 2018. "Seller's optimal replenishment policy and payment term among advance, cash, and credit payments," International Journal of Production Economics, Elsevier, vol. 197(C), pages 35-42.
    2. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    3. Ateka Banu & Shyamal Kumar Mondal, 2018. "An integrated inventory model with warranty dependent credit period under two policies of a manufacturer," OPSEARCH, Springer;Operational Research Society of India, vol. 55(3), pages 677-702, November.
    4. Mohsen Lashgari & Ata Allah Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    5. Yue Xie & Allen H. Tai & Wai-Ki Ching & Yong-Hong Kuo & Na Song, 2021. "Joint inspection and inventory control for deteriorating items with time-dependent demand and deteriorating rate," Annals of Operations Research, Springer, vol. 300(1), pages 225-265, May.
    6. Pourmohammad Zia, Nadia & Taleizadeh, Ata Allah, 2015. "A lot-sizing model with backordering under hybrid linked-to-order multiple advance payments and delayed payment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 19-37.
    7. Feng, Lin & Chan, Ya-Lan, 2019. "Joint pricing and production decisions for new products with learning curve effects under upstream and downstream trade credits," European Journal of Operational Research, Elsevier, vol. 272(3), pages 905-913.
    8. Ata Allah Taleizadeh & Nadia Pourmohammad-Zia & Ioannis Konstantaras, 2021. "Partial linked-to-order delayed payment and life time effects on decaying items ordering," Operational Research, Springer, vol. 21(3), pages 2077-2099, September.
    9. Nita H. Shah & Mrudul Y. Jani & Urmila Chaudhari, 2018. "Optimal replenishment time for retailer under partial upstream prepayment and partial downstream overdue payment for quadratic demand," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 24(1), pages 1-11, January.
    10. Mohsen Lashgari & Ata Taleizadeh & Abbas Ahmadi, 2016. "Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain," Annals of Operations Research, Springer, vol. 238(1), pages 329-354, March.
    11. 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.
    12. Chandra K. Jaggi & Mamta Gupta & Amrina Kausar & Sunil Tiwari, 2019. "Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution," Annals of Operations Research, Springer, vol. 274(1), pages 309-329, March.
    13. Toptal, Aysegül & Bingöl, Safa Onur, 2011. "Transportation pricing of a truckload carrier," European Journal of Operational Research, Elsevier, vol. 214(3), pages 559-567, November.
    14. Mahesh Kumar Jayaswal & Mandeep Mittal & Isha Sangal, 2021. "Ordering policies for deteriorating imperfect quality items with trade-credit financing under learning effect," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(1), pages 112-125, February.
    15. Mu, Xiuqing & Kang, Kai & Zhang, Jing, 2022. "Dual-channel supply chain coordination considering credit sales competition," Applied Mathematics and Computation, Elsevier, vol. 434(C).
    16. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.
    17. Hossein Salehi & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2016. "An EOQ model with random disruption and partial backordering," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2600-2609, May.
    18. Feng, Lin & Wang, Wan-Chih & Teng, Jinn-Tsair & Cárdenas-Barrón, Leopoldo Eduardo, 2022. "Pricing and lot-sizing decision for fresh goods when demand depends on unit price, displaying stocks and product age under generalized payments," European Journal of Operational Research, Elsevier, vol. 296(3), pages 940-952.
    19. Liao, Jui-Jung, 2008. "An EOQ model with noninstantaneous receipt and exponentially deteriorating items under two-level trade credit," International Journal of Production Economics, Elsevier, vol. 113(2), pages 852-861, June.
    20. Yu, Jonas C.P., 2019. "Optimizing a two-warehouse system under shortage backordering, trade credit, and decreasing rental conditions," International Journal of Production Economics, Elsevier, vol. 209(C), pages 147-155.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:operea:v:20:y:2020:i:3:d:10.1007_s12351-018-0391-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.