Heliyon (Jun 2024)
Different type of pay later facility for green product with selling price dependent demand using grey wolf optimizer
Abstract
The use of trade credit finance is becoming more widely acknowledged as a crucial approach to improving inventory system profitability. We review an inventory model with depending on permitted payment delays for which, if the retailer place an orders higher than or equal to a predefined quantity S1, then the supplier will provide a fully pay in later facility of ξ periods (i.e., there will be no charge of interest until ξ). On the other hand the retailer need to pay a partial amount of payment to the supplier if the order quantity is less than S1, and the remaining amount may be deferred for up to ξ periods. Main objective of this study is to investigate the inventory model with different situations under delayed payment facility. In addition, determining the product's demand also involves taking into account the item's greenness and selling price. We have also considered the fact that the cost of buying is influenced by the product's degree of greenness. We employ the meta heuristic algorithm Grey Wolf Optimizar (GWO) to assist us in solving the problem, and we compare the outcomes with the aid of a few other algorithms (Whale optimisation algorithm (WOA) and Artificial electric field algorithm (AEFA)). In the end, we resolve several numerical cases to support the model. The concavity of the desired function is graphically displayed using MATLAB software.
