Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits
The retailer’s optimal policies are developed when the product has fixed lifetime and also the units in inventory are subject to deterioration at a constant rate. This study will be mainly applicable to pharmaceuticals, drugs, beverages, and dairy products, and so forth. To boost the demand, offerin...
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| Format: | Article |
| Language: | English |
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Wiley
2014-01-01
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| Series: | International Journal of Mathematics and Mathematical Sciences |
| Online Access: | http://dx.doi.org/10.1155/2014/365929 |
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| _version_ | 1849406042630258688 |
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| author | Nita H. Shah Dushyantkumar G. Patel Digeshkumar B. Shah |
| author_facet | Nita H. Shah Dushyantkumar G. Patel Digeshkumar B. Shah |
| author_sort | Nita H. Shah |
| collection | DOAJ |
| description | The retailer’s optimal policies are developed when the product has fixed lifetime and also the units in inventory are subject to deterioration at a constant rate. This study will be mainly applicable to pharmaceuticals, drugs, beverages, and dairy products, and so forth. To boost the demand, offering a credit period is considered as the promotional tool. The retailer passes credit period to the buyers which is received from the supplier. The objective is to maximize the total profit per unit time of the retailer with respect to optimal retail price of an item and purchase quantity during the optimal cycle time. The concavity of the total profit per unit time is exhibited using inventory parametric values. The sensitivity analysis is carried out to advise the decision maker to keep an eye on critical inventory parameters. |
| format | Article |
| id | doaj-art-4efe064d2c6f43bc99b0f48d02a27381 |
| institution | Kabale University |
| issn | 0161-1712 1687-0425 |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Journal of Mathematics and Mathematical Sciences |
| spelling | doaj-art-4efe064d2c6f43bc99b0f48d02a273812025-08-20T03:36:31ZengWileyInternational Journal of Mathematics and Mathematical Sciences0161-17121687-04252014-01-01201410.1155/2014/365929365929Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade CreditsNita H. Shah0Dushyantkumar G. Patel1Digeshkumar B. Shah2Department of Mathematics, Gujarat University, Ahmedabad, Gujarat 380009, IndiaDepartment of Mathematics, Government Polytechnic for Girls, Ahmedabad, Gujarat 380015, IndiaDepartment of Mathematics, L.D. College of Engineering, Ahmedabad, Gujarat 380015, IndiaThe retailer’s optimal policies are developed when the product has fixed lifetime and also the units in inventory are subject to deterioration at a constant rate. This study will be mainly applicable to pharmaceuticals, drugs, beverages, and dairy products, and so forth. To boost the demand, offering a credit period is considered as the promotional tool. The retailer passes credit period to the buyers which is received from the supplier. The objective is to maximize the total profit per unit time of the retailer with respect to optimal retail price of an item and purchase quantity during the optimal cycle time. The concavity of the total profit per unit time is exhibited using inventory parametric values. The sensitivity analysis is carried out to advise the decision maker to keep an eye on critical inventory parameters.http://dx.doi.org/10.1155/2014/365929 |
| spellingShingle | Nita H. Shah Dushyantkumar G. Patel Digeshkumar B. Shah Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits International Journal of Mathematics and Mathematical Sciences |
| title | Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits |
| title_full | Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits |
| title_fullStr | Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits |
| title_full_unstemmed | Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits |
| title_short | Optimal Policies for Deteriorating Items with Maximum Lifetime and Two-Level Trade Credits |
| title_sort | optimal policies for deteriorating items with maximum lifetime and two level trade credits |
| url | http://dx.doi.org/10.1155/2014/365929 |
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