Inventory Model for Deteriorating Items with Quadratic Time Dependent Demand under Trade Credits

Abstract

In this paper, an EOQ model is developed for a deteriorating item with quadratic time dependent demand rate under trade credit. Mathematical models are also derived under two different situations i.e. Case I; the credit period is less than the cycle time for settling the account and Case II; the credit period is greater than or equal to the cycle time for settling the account. The numerical examples are also given to validate the proposed model. Sensitivity analysis is given to study the effect of various parameters on ordering policy and optimal total profit. Mathematica 7.1 software is used for finding optimal numerical solutions.

Keywords

• Quadratic time
• Dependent demand
• Inventory
• Trade credits
• Deterioration
• Time dependent