Title: Optimal procurement policy for growing items under permissible delay in payment

Authors: Amit Kumar Saraswat; Ashish Sharma

Addresses: Department of Mathematics, Institute of Applied Sciences and Humanities, GLA University, NH-2, Mathura, 281406, India; School of Sciences, CHRIST (Deemed to be University), Delhi- NCR, Ghaziabad, 201003, India ' Department of Mathematics, Institute of Applied Sciences and Humanities, GLA University, NH-2, Mathura, 281406, India; School of Sciences, CHRIST (Deemed to be University), Delhi- NCR, Ghaziabad, 201003, India

Abstract: In the last decade, growing item industries have shown an increasing trend in production and it is expected that such industries will maintain this increasing pace in the future. Existing challenges of these industries, like mortality in the production phase and deterioration in the consumption phase, make procurement decisions more complex. In this article, we established an inventory model with mortality, deterioration, and price-dependent demand. To increase the sales volume and profit, a delay in payment policy is considered. A numerical example is presented to explain the solution procedure. The concavity of the profit function is discussed analytically for decision variables. It has been observed through sensitivity analysis that selling price is the most sensitive among decision variables and parameters.

Keywords: growing items; inventory management; deteriorating items; mortality; delay in payment.

DOI: 10.1504/IJSOM.2024.137318

International Journal of Services and Operations Management, 2024 Vol.47 No.3, pp.354 - 365

Received: 07 Aug 2021
Accepted: 01 Dec 2021
Published online: 12 Mar 2024 *

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