An EOQ model for non-instantaneously deteriorating items under permissible delay in payments and inflation

Abstract

In today’s competitive business transactions, the supplier is trying to attract retailer by giving many attracting offers. Trade credit, where extra time is given to settle the amount is one of the most attracting features. The demand is proportional to price and time parameter with partial backlogging. Hence in this study while drafting the EOQ Model, a trade credit policy has been adopted for non-instantaneous deteriorating items. This profit maximization model is established to find order quantity, optimal replenishment cycle time and optimal selling price. Finally, for the proper demonstration of model, a numerical example is given.