Optimal ordering policy for deteriorating items with stock dependent demand, partial backlogging and trade credit period

Abstract

In this paper, policies of optimal ordering has been focused on economic order quantity (EOQ) model, where we considered deteriorated as well as non-instantaneous nature items. In this inventory model, we are also assuming there is a stock-dependent demand and constant holding cost. Occurrence of shortage was assumed during the complete process of the system, taking into consideration with partial backlogging where deterioration of items follows the Weibull distribution. In the present study, it is considered that the supplier's proposed lucrative trade credit offers to the retailers to buy more to generate more revenue. Numerical examples parallel to the present inventory model gives an optimal result. Lastly, sensitivity analysis applied to different parameters and graphical representations have shown to validate the model.