1.
Mihir S. Suthar
– Pdpias, Charotar University Of Science And Technology, Anand, Gujarat, India.
2.
Kunal T. Shukla
– Pdpias, Charotar University Of Science And Technology, Anand, Gujarat, India.
Abstract
It has been observed that items like trendy goods, cellular phones, electronic toys and others have trapezoidal type demand
pattern and have a short life cycle due to competitive products. As a result, to boost the demand of an item, retailer offers a credit
period to the customers. This might lead to default risks for the retailer. Moreover, for such items, non-instantaneous deterioration
is observed. In this article, an optimal credit period and ordering policy are presented for items having trapezoidal type demand
rate depending upon credit period offered to the customers; having non-instantaneous deterioration and no shortages. The
objective is to maximize total profit function for an inventory system. Model is supported with numerical examples and sensitivity
analysis is carried out.
Keywords Inventory System, Non-Instantaneous Deterioration, Trapezoidal Demand, Credit Period Policy.
