An EPQ Model of Sustainable Items with Quadratic Demand of Time Considering Trade Credit Policy

Abstract

Now-a-days Sustainable Economic Production Quantity (SEPQ) models get more focus over classical Economic production Quantity (EPQ) models. Here, we developed an inventory model of sustainable items considering quadratic demand of time and exponential holding cost where shortages occurred which will be fully backlogged considering obsolescence cost and carbon emission cost. For the first time, in this sustainable EPQ model, an optional and better approach of payment for extra stock after the credit period is discussed. After that, the proposed model has been solved by using Non-linear optimization technique-GRG method (LINGO 13.0 software). The optimal solutions were illustrated both in graphically and numerically in this present study.