An inventory model with time dependent demand and shortages under trade credit policy

S. Khanra, Buddhadev Mandal, Biswajit Sarkar

Research output: Contribution to journalArticle

48 Citations (Scopus)

Abstract

This model investigates an economic order quantity (EOQ) model over a finite time horizon for an item with a quadratic time dependent demand by considering shortages in inventory under permissible delay in payments. Shortages are assumed after variable time T1(< T cycle period). The credit period (m) is known and fixed. The model is derived under three different circumstances depending on the time of occurrence of shortages, credit period, and cycle time. The results are illustrated with the help of numerical examples. The sensitivity analysis of key parameters of the optimal solution is studied with respect to changes in different parametric values. Some special features of the model are discussed.

Original languageEnglish
Pages (from-to)349-355
Number of pages7
JournalEconomic Modelling
Volume35
DOIs
Publication statusPublished - 2013 Sep 1

Fingerprint

Inventory model
Trade credit
Shortage
Credit policy
Credit
Time horizon
Permissible delay in payments
Optimal solution
Economic order quantity
Cycle time
Sensitivity analysis

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

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An inventory model with time dependent demand and shortages under trade credit policy. / Khanra, S.; Mandal, Buddhadev; Sarkar, Biswajit.

In: Economic Modelling, Vol. 35, 01.09.2013, p. 349-355.

Research output: Contribution to journalArticle

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