OPTIMAL INVENTORY POLICY WITH PRICE-DEPENDENT DEMAND AND VARIABLE DETERIORATION RATE ALSO DELT WITH TRADE CREDIT

ABSTRACT

In this paper we developed an inventory model for an optimal payment policy for deteriorating items under the influence of trade credit. Demand rate of the product is considered as the function of selling price. Here, we consider the deteriorating item that follows three-parameter Weibull distribution deterioration. Finally, the optimal solution is illustrated with help of numerical example and the sensitivity analysis is carried out with respect to different parameters.