Title: Inventory model for deteriorating items with ramp type demand under permissible delay in payment

Authors: Ashish Sharma; Jitendra Kaushik

Addresses: Department of Mathematics, Institute of Applied Sciences and Humanities, GLA University, NH-2, Mathura, 281406, India ' Department of Mathematics, Institute of Applied Sciences and Humanities, GLA University, NH-2, Mathura, 281406, India; Department of Data Science, CHRIST (Deemed to be University), 30 Valor Court, Dasve Cir, Lavasa, Pune, India

Abstract: Permissible delay in payment is a common method of payment often used by the suppliers and it generally leads to higher sales and ultimately higher revenue. This method is significant in the case of deteriorating products. In this paper, an inventory model for the deteriorating items with price and time-dependent ramp type demand is presented with shortages allowed and partially backlogged. The solution procedure is illustrated by numerical examples. The concavity of the profit function with respect to the decision variable is discussed analytically. Numerical analysis shows that the profit per unit time increases with the delay payment facility.

Keywords: nonlinear demand function; permissible delay; deterioration; shortage.

DOI: 10.1504/IJPM.2021.117292

International Journal of Procurement Management, 2021 Vol.14 No.5, pp.578 - 595

Received: 04 Mar 2020
Accepted: 22 Jun 2020
Published online: 31 Aug 2021 *

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