Recent trends in modeling of deteriorating inventory

Review of inventory systems with deterioration since 2001

Deterministic and Stochastic Optimal Control

A survey on new generation metaheuristic algorithms

The main purpose of this note is to modify the assumption of the trade credit policy in previously published results to reflect the real-life situations. All previously published models implicitly assumed that the supplier would offer the retailer a delay period, but the retailer would not offer the trade credit period to his/her customer. In most business transactions, this assumption is debatable. In this note, we assume that the retailer also adopts the trade credit policy to stimulate his/her customer demand to develop the retailer's replenishment model. Furthermore, we assume that the retailer's trade credit period offered by supplier M is not shorter than the customer's trade credit period offered by retailer N(M⩾N). Under these conditions, we model the retailer's inventory system as a cost minimization problem to determine the retailer's optimal ordering policies. Then a theorem is developed to determine efficiently the optimal ordering policies for the retailer. We deduce some previously published results of other researchers as special cases. Finally, numerical examples are given to illustrate the theorem obtained in this note.

http://ir.lib.cyut.edu.tw:8080/bitstream/310901800/6648/1/PPJORS(54,9,1011).pdf

Optimal retailer's ordering policies in the EOQ model under trade credit financing

This paper considers an inventory system with non-instantaneous deteriorating item in which demand rate is a function of advertisement of an item and selling price. This paper aids the retailer in maximizing the total profit by determining optimal inventory and marketing parameters. In contrast to previous inventory models, an arbitrary holding cost rate and arbitrary deterioration rate have been incorporated to provide general framework to the model. First, a mathematical model is formulated and then some useful theoretical results have been framed to characterize the optimal solutions. The necessary and sufficient conditions for the existence and uniqueness of the optimal solutions are also derived. An algorithm is designed to find the optimum solutions of the proposed model. Numerical examples are included to illustrate the algorithmic procedure and the effects of key parameters are studied to analyze the behavior of the model.

Nita H. Shah

Papers

Optimizing inventory and marketing policy for non-instantaneous deteriorating items with generalized type deterioration and holding cost rates

A lot-size model for exponentially decaying inventory when delay in payments is permissible

Optimal ordering policy for stock-dependent demand under progressive payment scheme

Retailer's pricing, credit and inventory policies for deteriorating items in response to temporary price/credit incentives

Literature survey on inventory models for deteriorating items