Supply chain management under the effect of trade credit for deteriorating items with ramp-type demand and partial backordering under inflationary environment

Abstract

Article history: Received September 18, 2014 Received in revised format April 10, 2015 Accepted May 25 2015 Available online June 1 2015 In this paper, a supply chain inventory model is developed in inflationary environment by incorporating some realistic features such as ramp type demand, deterioration, partial backlogging, inflation, and trade credit. Here, rate of deterioration is linear and partial backlogging rate is variable and dependent on the waiting time for the next replenishment. Depending on the trade credit period, three different situations arise. For each model the optimal replenishment policy is determined. Numerical examples are provided to illustrate the proposed inventory model and sensitivity analyses of optimal solutions are given for each case of trapezoidal demand function. Growing Science Ltd. All rights reserved. 5 © 201