Decision support system for customers during availability of trade credit financing with different pricing situations

Ali Akbar Shaikh; Subhash Chandra Das; Asoke Kumar Bhunia; Biswajit Sarkar

doi:10.1051/ro/2021015

Decision support system for customers during availability of trade credit financing with different pricing situations

Ali Akbar Shaikh, Subhash Chandra Das, Asoke Kumar Bhunia, Biswajit Sarkar

Department of Industrial Engineering

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

This study introduces an inventory system with a non-instantaneous deteriorating product with credit facility and variable demand depending on the selling price. Two different selling prices are considered in the deterioration and non-deterioration periods. Shortages are partially backlogged and dependent on the length of the customers' waiting time upto the arrival of fresh lot. Alternative trade-credit policy is applied herein, and several cases, sub-cases and situations are investigated. The corresponding optimization problems of different cases, sub-cases and situations are solved using an interval-oriented multi-section technique with the help of interval mathematics and interval order relations. A numerical example with three different credit periods is studied and solved to validate the said problem. Also, two different case studies are investigated. Then to investigate the effect of changes of several system parameters on the optimal policy, post optimality analyses are performed.

Original language	English
Pages (from-to)	1043-1061
Number of pages	19
Journal	RAIRO - Operations Research
Volume	55
Issue number	2
DOIs	https://doi.org/10.1051/ro/2021015
Publication status	Published - 2021 Mar 1

Bibliographical note

Funding Information:
Acknowledgements. All authors are very much thankful to the anonymous Reviewers for their constructive comments and suggestions. The first author is very much thankful to University Grants Commission (UGC) for funding the research. The fund number is F.30-425/2018(BSR) dt. 04.01.2019. This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIT) (NRF-2020R1F1A1064460).

Publisher Copyright:
© EDP Sciences, ROADEF, SMAI 2021.

All Science Journal Classification (ASJC) codes

Theoretical Computer Science
Computer Science Applications
Management Science and Operations Research

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10.1051/ro/2021015

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title = "Decision support system for customers during availability of trade credit financing with different pricing situations",

abstract = "This study introduces an inventory system with a non-instantaneous deteriorating product with credit facility and variable demand depending on the selling price. Two different selling prices are considered in the deterioration and non-deterioration periods. Shortages are partially backlogged and dependent on the length of the customers' waiting time upto the arrival of fresh lot. Alternative trade-credit policy is applied herein, and several cases, sub-cases and situations are investigated. The corresponding optimization problems of different cases, sub-cases and situations are solved using an interval-oriented multi-section technique with the help of interval mathematics and interval order relations. A numerical example with three different credit periods is studied and solved to validate the said problem. Also, two different case studies are investigated. Then to investigate the effect of changes of several system parameters on the optimal policy, post optimality analyses are performed.",

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N1 - Funding Information: Acknowledgements. All authors are very much thankful to the anonymous Reviewers for their constructive comments and suggestions. The first author is very much thankful to University Grants Commission (UGC) for funding the research. The fund number is F.30-425/2018(BSR) dt. 04.01.2019. This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (MSIT) (NRF-2020R1F1A1064460). Publisher Copyright: © EDP Sciences, ROADEF, SMAI 2021.

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N2 - This study introduces an inventory system with a non-instantaneous deteriorating product with credit facility and variable demand depending on the selling price. Two different selling prices are considered in the deterioration and non-deterioration periods. Shortages are partially backlogged and dependent on the length of the customers' waiting time upto the arrival of fresh lot. Alternative trade-credit policy is applied herein, and several cases, sub-cases and situations are investigated. The corresponding optimization problems of different cases, sub-cases and situations are solved using an interval-oriented multi-section technique with the help of interval mathematics and interval order relations. A numerical example with three different credit periods is studied and solved to validate the said problem. Also, two different case studies are investigated. Then to investigate the effect of changes of several system parameters on the optimal policy, post optimality analyses are performed.

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Decision support system for customers during availability of trade credit financing with different pricing situations

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