An Inventory Model for Stock and Time-Dependent Demand with Cash Discount Policy Under Learning Effect and Partial Backlogging

Abstract

This study considers an inventory model with stock and time-dependent demand. Stock level always plays a very vital role and affects the demand rate. Vendors usually offer different schemes to attract more customers. In this paper, the scheme of cash discount is working as promotional tool for increasing demand rate. Shortages are allowed with partial backlogging and backlogging rate present in the model is assumed as a waiting time-dependent function. To make the study more realistic learning effect is applied on holding cost. Three cases for the allowed trade credit period are described in the present paper. To illustrate the model numerical example for different cases have been discussed by using Mathematica 11.3. sensitivity analysis with respect to distinct parameters is carried out for the feasibility and the applicability of the model.