EOQ Inventory Model for Perishable Items with Price Dependent Demand and Preservation Technique under Upstream and Downstream Trade Credit

Abstract

Perishable items are typically fresh food that has a relatively short lifetime. To increase the lifetime of perishable items preservation techniques are prone. Suppliers consider a two-level partial trade credit model to sell the goods before it deteriorates to minimize the revenue loss. The two-level trade credits are a) Supplier proposes that the retailer pay a portion of the order in cash when it is delivered, and then offers a short-term interest-free loan for the balance and b) Retailers offer partial delay in payment to their customers. The present research article investigates the analysis of the EOQ inventory model on the perishable items with a price-dependent demand under upstream and downstream partial trade credit. Economic Order Quantity is calculated for the propound inventory model using the given parameters.