In real life situation, supplier generally offers a delay period to the retailer to buy more. In this connection, a mathematical model is considered to investigate the retailer's optimal replenishment policy under permissible delay in payment with stock dependent demand within the EOQ (Economic Order Quantity) framework. Most of the EOQ models are considered with infinite replenishment rate. In this article, the model is considered with finite replenishment rate under progressive payment scheme with the production of defective items within the cycle time. The mathematical models have been derived for obtaining the optimal cycle time so that the annual total relevant cost is minimized. Numerical examples along with graphical representation and sensitivity analysis are provided to illustrate the model.
All Science Journal Classification (ASJC) codes
- Computational Mathematics
- Applied Mathematics