### Abstract

We consider an inventory model for perishable products with stock-dependent demand under inflation. It is assumed that the supplier offers a credit period to the retailer, and the length of credit period is dependent on the order quantity. The retailer does not need to pay the purchasing cost until the end of credit period. If the revenue earned by the end of credit period is enough to pay the purchasing cost or there is budget, the balance is settled and the supplier does not charge any interest. Otherwise, the supplier charges interest for unpaid balance after credit period, and the interest and the remaining payments are made at the end of the replenishment cycle. The objective is to minimize the retailer's (net) present value of cost. We show that there is an optimal cycle length to minimize the present value of cost; furthermore, a solution procedure is given to find the optimal solution. Numerical experiments are provided to illustrate the proposed model.

Original language | English |
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Article number | 702939 |

Journal | Mathematical Problems in Engineering |

Volume | 2013 |

DOIs | |

Publication status | Published - 2013 Dec 16 |

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### ASJC Scopus subject areas

- Mathematics(all)
- Engineering(all)

### Cite this

*Mathematical Problems in Engineering*,

*2013*, [702939]. https://doi.org/10.1155/2013/702939

**An inventory model for perishable products with stock-dependent demand and trade credit under inflation.** / Yang, Shuai; Lee, Chul Ung; Zhang, Anming.

Research output: Contribution to journal › Article

*Mathematical Problems in Engineering*, vol. 2013, 702939. https://doi.org/10.1155/2013/702939

}

TY - JOUR

T1 - An inventory model for perishable products with stock-dependent demand and trade credit under inflation

AU - Yang, Shuai

AU - Lee, Chul Ung

AU - Zhang, Anming

PY - 2013/12/16

Y1 - 2013/12/16

N2 - We consider an inventory model for perishable products with stock-dependent demand under inflation. It is assumed that the supplier offers a credit period to the retailer, and the length of credit period is dependent on the order quantity. The retailer does not need to pay the purchasing cost until the end of credit period. If the revenue earned by the end of credit period is enough to pay the purchasing cost or there is budget, the balance is settled and the supplier does not charge any interest. Otherwise, the supplier charges interest for unpaid balance after credit period, and the interest and the remaining payments are made at the end of the replenishment cycle. The objective is to minimize the retailer's (net) present value of cost. We show that there is an optimal cycle length to minimize the present value of cost; furthermore, a solution procedure is given to find the optimal solution. Numerical experiments are provided to illustrate the proposed model.

AB - We consider an inventory model for perishable products with stock-dependent demand under inflation. It is assumed that the supplier offers a credit period to the retailer, and the length of credit period is dependent on the order quantity. The retailer does not need to pay the purchasing cost until the end of credit period. If the revenue earned by the end of credit period is enough to pay the purchasing cost or there is budget, the balance is settled and the supplier does not charge any interest. Otherwise, the supplier charges interest for unpaid balance after credit period, and the interest and the remaining payments are made at the end of the replenishment cycle. The objective is to minimize the retailer's (net) present value of cost. We show that there is an optimal cycle length to minimize the present value of cost; furthermore, a solution procedure is given to find the optimal solution. Numerical experiments are provided to illustrate the proposed model.

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U2 - 10.1155/2013/702939

DO - 10.1155/2013/702939

M3 - Article

VL - 2013

JO - Mathematical Problems in Engineering

JF - Mathematical Problems in Engineering

SN - 1024-123X

M1 - 702939

ER -