Title: An inventory model for deteriorating item with frequency of advertisement and selling price dependent demand under mixed type trade credit policy

Authors: Ali Akbar Shaikh

Addresses: School of Engineering and Sciences, Tecnológico de Monterrey, E. Garza Sada 2501 Sur, C.P. 64849, Monterrey, Nuevo León, México

Abstract: In this paper, we have developed an inventory model for a deteriorating item with selling price and frequency of advertisement dependent demand of an item under the mixed type financial trade credit policy. Shortages are allowed and partially backlogged with a variable rate dependent on the duration of waiting time up to the arrival of next lot. In this model, the deterioration rate follows three-parameter Weibull distribution. Transportation cost is dependent on the lot-size as well as the distance from the source to the destination. The corresponding model has been formulated and solved by generalised reduced gradient-based method. Numerical examples have been considered to discuss the results and the significant features of this model. Finally, based on these examples, the effects of different parameters have been studied by sensitivity analyses taking one parameter at a time keeping the other parameters as same.

Keywords: inventory; deterioration; Weibull distribution; advertise and price dependent demand; partially backlogged shortage; mixed type credit policy.

DOI: 10.1504/IJLSM.2017.086949

International Journal of Logistics Systems and Management, 2017 Vol.28 No.3, pp.375 - 395

Received: 19 Apr 2016
Accepted: 10 Jul 2016
Published online: 03 Oct 2017 *

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