Inventory Model with Different Deterioration Rates for Imperfect Quality Items and Inflation considering Price and Time Dependent Demand under Permissible Delay in Payments
Abstract: One of the assumptions for an economic order quantity model is that all items received in an order are of perfect quality is not always fulfilled. Some of the items are of defective quality in the lot received. Another assumption is that as soon as items are received, payments are made. In today’s competitive the supplier allows certain fixed period known as permissible delay for payment to the retailer for settling the amount of items received. Keeping this reality, a deterministic inventory model with imperfect quality is developed when deterioration rate is different during a cycle. Here it is assumed that demand is a function of time and price. Numerical example is taken to support the model. Sensitivity analysis is also carried out for parameters.
Key Words: Inventory model, Varying Deterioration, Time dependent demand, Price dependent demand, Defective items, Inflation, Permissible Delay
