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Journals / An International Journal of Optimization and Control: Theories & Applications (IJOCTA) / 2022 / Cilt: 12 - Sayı: 1

An EOQ model for deteriorating items analyzing retailer’s optimal strategy under trade credit and return policy with nonlinear demand and resalable returns

Mamta Kumar
Pijus Kanti De
Pages
47–55
Publication Date
2022-10-11
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

A numerical example is also presented and a sensitivity analysis is carried to highlight the findings of the suggested inventory model.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This paper presents an EOQ model where demand is dependent upon time and selling price.
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Key Findings & Data:In the proposed model of inventory, the retailer allows its unsatisfied customers to return their product whereas the manufacturer offers a full trade credit policy to the retailer.
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Conclusion & Impact:A numerical example is also presented and a sensitivity analysis is carried to highlight the findings of the suggested inventory model.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

This paper presents an EOQ model where demand is dependent upon time and selling price. In the proposed model of inventory, the retailer allows its unsatisfied customers to return their product whereas the manufacturer offers a full trade credit policy to the retailer. To make our model realistic, we have assumed that the product returned can be resold with the same selling price. Number of returns is a function of demand. In this proposed inventory model considering deterioration, the retailer does not fully reimburse its customers for the returned product. The primary purpose of this inventory model is to determine the optimal selling price, optimal order quantity, and optimal replenishment cycle length in order to maximize the retailer’s total profit earned per unit time. A numerical example is also presented and a sensitivity analysis is carried to highlight the findings of the suggested inventory model.

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Cite This Article

Kumar, M., De, P. K. (2022). An EOQ model for deteriorating items analyzing retailer’s optimal strategy under trade credit and return policy with nonlinear demand and resalable returns. An International Journal of Optimization and Control: Theories & Applications (IJOCTA), Cilt: 12 - Sayı: 1, 47–55. https://ajindex.com/articles/440512

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References (1)

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