Abstract
This study presents a preservation technology model for deteriorating items with constant rate of deterioration. The requirements for the items are received as a function of advertisement frequency and selling price. The two types of trade credit is the main focus of this study. First one is provided by the supplier to the retailer and another one is the partial trade credit offered by the retailer to the customer. The optimal policy is presented to earn maximum profit with optimal values of selling price, advertisement frequency, preservation technology and total cycle length. The study is numerically verified with sensitivity analysis to check the sensitivity of the model.
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