Inventory models for stock-dependent demand and time varying holding cost under different trade credits

Abstract

Deterioration, a continuous process of all items, may be low or high for different items. This paper develops an inventory model for stock-dependent demand and time varying holding cost under different trade credits, considering four different situations. The second order approximations are used for exponential terms. Optimal solutions are obtained using Mathematica 9.0 software. Numerical examples and sensitivity analysis are provided to illustrate the proposed model.

Keywords

• stock-dependent demand
• deterioration
• credit
• cash discount
• time-dependent holding cost