An inventory model with time dependent demand and shortages under trade credit policy

S. Khanra; Buddhadev Mandal; Biswajit Sarkar

doi:10.1016/j.econmod.2013.07.031

An inventory model with time dependent demand and shortages under trade credit policy

S. Khanra, Buddhadev Mandal, Biswajit Sarkar

Department of Industrial Engineering

Research output: Contribution to journal › Article › peer-review

74 Citations (Scopus)

Abstract

This model investigates an economic order quantity (EOQ) model over a finite time horizon for an item with a quadratic time dependent demand by considering shortages in inventory under permissible delay in payments. Shortages are assumed after variable time T₁(< T cycle period). The credit period (m) is known and fixed. The model is derived under three different circumstances depending on the time of occurrence of shortages, credit period, and cycle time. The results are illustrated with the help of numerical examples. The sensitivity analysis of key parameters of the optimal solution is studied with respect to changes in different parametric values. Some special features of the model are discussed.

Original language	English
Pages (from-to)	349-355
Number of pages	7
Journal	Economic Modelling
Volume	35
DOIs	https://doi.org/10.1016/j.econmod.2013.07.031
Publication status	Published - 2013 Sept

Bibliographical note

Funding Information:
The authors would like to thank the reviewers for their valuable and constructive suggestions to improve the paper. This work was supported by the University Grant Commission Minor Project, New Delhi, India (Minor Research Project, File no. 41-1433/2012(SR) ). The authors would like to acknowledge the infrastructural assistance of Vidyasagar University, West Bengal, India in carrying out the research.

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.1016/j.econmod.2013.07.031

Cite this

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title = "An inventory model with time dependent demand and shortages under trade credit policy",

abstract = "This model investigates an economic order quantity (EOQ) model over a finite time horizon for an item with a quadratic time dependent demand by considering shortages in inventory under permissible delay in payments. Shortages are assumed after variable time T1(< T cycle period). The credit period (m) is known and fixed. The model is derived under three different circumstances depending on the time of occurrence of shortages, credit period, and cycle time. The results are illustrated with the help of numerical examples. The sensitivity analysis of key parameters of the optimal solution is studied with respect to changes in different parametric values. Some special features of the model are discussed.",

author = "S. Khanra and Buddhadev Mandal and Biswajit Sarkar",

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AU - Khanra, S.

AU - Mandal, Buddhadev

AU - Sarkar, Biswajit

N1 - Funding Information: The authors would like to thank the reviewers for their valuable and constructive suggestions to improve the paper. This work was supported by the University Grant Commission Minor Project, New Delhi, India (Minor Research Project, File no. 41-1433/2012(SR) ). The authors would like to acknowledge the infrastructural assistance of Vidyasagar University, West Bengal, India in carrying out the research.

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N2 - This model investigates an economic order quantity (EOQ) model over a finite time horizon for an item with a quadratic time dependent demand by considering shortages in inventory under permissible delay in payments. Shortages are assumed after variable time T1(< T cycle period). The credit period (m) is known and fixed. The model is derived under three different circumstances depending on the time of occurrence of shortages, credit period, and cycle time. The results are illustrated with the help of numerical examples. The sensitivity analysis of key parameters of the optimal solution is studied with respect to changes in different parametric values. Some special features of the model are discussed.

AB - This model investigates an economic order quantity (EOQ) model over a finite time horizon for an item with a quadratic time dependent demand by considering shortages in inventory under permissible delay in payments. Shortages are assumed after variable time T1(< T cycle period). The credit period (m) is known and fixed. The model is derived under three different circumstances depending on the time of occurrence of shortages, credit period, and cycle time. The results are illustrated with the help of numerical examples. The sensitivity analysis of key parameters of the optimal solution is studied with respect to changes in different parametric values. Some special features of the model are discussed.

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An inventory model with time dependent demand and shortages under trade credit policy

Abstract

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