Determination of optimal pricing, shipment and payment policies for an integrated supplier-buyer deteriorating inventory model in buoyant market with two-level trade credit
type: Item
instance of: scholarly article
title: Determination of optimal pricing, shipment and payment policies for an integrated supplier-buyer deteriorating inventory model in buoyant market with two-level trade credit
zbMATH Open document ID: 1230.90025
DOI: 10.1504/IJOR.2011.040693
author: Nita H. Shah
author: Ajay S. Gor
author: Chetan A. Jhaveri
published in: International Journal of Operational Research
publication date: 2012-01-18T00:00:00Z
review text: Summary: In this paper, an integrated supplier-buyer inventory model is studied when the units in inventory are subject to deterioration at a constant rate, the market demand is quadratic and sensitive to retailer price and the supplier offers a trade credit. The trade credit policy under assumption is ``two-part'' strategy viz. ``net credit'', that is, retailer has a choice between cash discount and trade credit. ``Net credit'' means that, if the buyer pays within time period \(M_{1}\), then the buyer receives a cash discount, otherwise, the full account must be settled before time period \(M_{2}\) where \(M_{2} > M_{1} \geq 0\). The goal is to determine the optimal pricing, ordering, shipping and payment policy to maximise the joint profit per unit time. An algorithm is given to obtain an optimal solution. A numerical example is given to validate the proposed model and to arrive at managerial insights.
Mathematics Subject Classification ID: 90B05
zbMATH DE Number: 5999216
zbMATH Keywords: integrated inventory modelling
zbMATH Keywords: net credit
zbMATH Keywords: price sensitive quadratic demand
zbMATH Keywords: deterioration
MaRDI profile type: Publication
full work available at URL: ijor.2011.040693
OpenAlex ID: W2056413690
description: scientific article; zbMATH DE number 5999216