An economic production quantity (EPQ) model for a deteriorating item with partial trade credit policy for price dependent demand under inflation and reliability
DOI:
https://doi.org/10.2298/YJOR200515036SKeywords:
Economic production quantity (EPQ) model, partial trade credit policy, ination, reliability, deteriorationAbstract
It is well-known that the production-inventory problem for deteriorating items in the supply chain is a challenge when deciding on how many products to manufacture to obtain a maximum total profit. This research work develops an economic production quantity model for a deteriorating item under partial trade credit policy considering inflation, the effect of reliability factor of a production system, and the demand depending on the price of a product whose selling price is optimized. The production inventory model is formulated as a nonlinearly constrained optimization problem by analyzing different cases. Finally, through a numerical example, a sensitivity analysis is performed to study the effect of different parameters, changing one parameter at a time and keeping others fixed at their original values.References
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