Abstract
The finite horizon should be considered for products with a limited lifecycle. To introduce this possibility, multiple orders and partial backlogging policies are established under trade credit in an inventory model, where demand is a time-varying function and the backlogging rate is a decreasing function about a customer's waiting time. This paper presents lemmas and theories to determine optimal replenishment time and backlogging time to maximize total profit for the retailer. A search algorithm to solve the optimal order strategy is proven based on the theoretical results. Numerical examples are presented, and the optimal order strategy is obtained. A sensitivity analysis of the main parameters is carried out. The effects of total profit on the main parameter of trade credit are analyzed from both macroscopic and microscopic perspectives.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
