Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging

This paper formulates six inventory models for products with instantaneous deterioration, focusing on the impacts of full and partial advance payment structures. The demand function depends on both price and stock levels and accounts for shortages through full backlogging. The primary objective is t...

Full description

Saved in:
Bibliographic Details
Main Authors: Rabeya Sarker, Md. Sharif Uddin, Md Abu Helal, Aminur Rahman Khan, Ali AlArjani, El-Awady Attia
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Computation
Subjects:
Online Access:https://www.mdpi.com/2079-3197/12/12/244
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850042491602993152
author Rabeya Sarker
Md. Sharif Uddin
Md Abu Helal
Aminur Rahman Khan
Ali AlArjani
El-Awady Attia
author_facet Rabeya Sarker
Md. Sharif Uddin
Md Abu Helal
Aminur Rahman Khan
Ali AlArjani
El-Awady Attia
author_sort Rabeya Sarker
collection DOAJ
description This paper formulates six inventory models for products with instantaneous deterioration, focusing on the impacts of full and partial advance payment structures. The demand function depends on both price and stock levels and accounts for shortages through full backlogging. The primary objective is to determine the optimal payment policy under varying trade facilities, analyzing six distinct payment scenarios commonly employed in business practice. Each model is presented with closed-form solutions and supported by mathematical formulations. For each case, algorithms and mathematical proofs are developed to determine the optimal cycle duration and corresponding unit cost. Numerical examples and 2D graphical representations generated using MATLAB are included to validate the proposed models. Additionally, a sensitivity analysis is conducted to examine the effects of each payment policy and parameter variation, providing key managerial insights into payment planning in inventory management.
format Article
id doaj-art-6ceead6d181c4d4aa89161ec2e90e4ef
institution DOAJ
issn 2079-3197
language English
publishDate 2024-12-01
publisher MDPI AG
record_format Article
series Computation
spelling doaj-art-6ceead6d181c4d4aa89161ec2e90e4ef2025-08-20T02:55:32ZengMDPI AGComputation2079-31972024-12-01121224410.3390/computation12120244Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full BackloggingRabeya Sarker0Md. Sharif Uddin1Md Abu Helal2Aminur Rahman Khan3Ali AlArjani4El-Awady Attia5Department of Mathematics, Jahangirnagar University, Dhaka 1342, BangladeshIndustrial Engineering Department, College of Engineering, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi ArabiaInformation Systems and Operations Management, University of Texas at Arlington, Arlington, TX 76019, USADepartment of Mathematics, Jahangirnagar University, Dhaka 1342, BangladeshIndustrial Engineering Department, College of Engineering, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi ArabiaIndustrial Engineering Department, College of Engineering, Prince Sattam Bin Abdulaziz University, Al-Kharj 11942, Saudi ArabiaThis paper formulates six inventory models for products with instantaneous deterioration, focusing on the impacts of full and partial advance payment structures. The demand function depends on both price and stock levels and accounts for shortages through full backlogging. The primary objective is to determine the optimal payment policy under varying trade facilities, analyzing six distinct payment scenarios commonly employed in business practice. Each model is presented with closed-form solutions and supported by mathematical formulations. For each case, algorithms and mathematical proofs are developed to determine the optimal cycle duration and corresponding unit cost. Numerical examples and 2D graphical representations generated using MATLAB are included to validate the proposed models. Additionally, a sensitivity analysis is conducted to examine the effects of each payment policy and parameter variation, providing key managerial insights into payment planning in inventory management.https://www.mdpi.com/2079-3197/12/12/244instantaneous deteriorating itemsfully backloggeddiscountstock- and price-dependent demandinventory model
spellingShingle Rabeya Sarker
Md. Sharif Uddin
Md Abu Helal
Aminur Rahman Khan
Ali AlArjani
El-Awady Attia
Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging
Computation
instantaneous deteriorating items
fully backlogged
discount
stock- and price-dependent demand
inventory model
title Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging
title_full Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging
title_fullStr Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging
title_full_unstemmed Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging
title_short Inventory Model for Instantaneously Deteriorating Items with Multiple Trade Facilities, Stock- and Price-Dependent Demand, and Full Backlogging
title_sort inventory model for instantaneously deteriorating items with multiple trade facilities stock and price dependent demand and full backlogging
topic instantaneous deteriorating items
fully backlogged
discount
stock- and price-dependent demand
inventory model
url https://www.mdpi.com/2079-3197/12/12/244
work_keys_str_mv AT rabeyasarker inventorymodelforinstantaneouslydeterioratingitemswithmultipletradefacilitiesstockandpricedependentdemandandfullbacklogging
AT mdsharifuddin inventorymodelforinstantaneouslydeterioratingitemswithmultipletradefacilitiesstockandpricedependentdemandandfullbacklogging
AT mdabuhelal inventorymodelforinstantaneouslydeterioratingitemswithmultipletradefacilitiesstockandpricedependentdemandandfullbacklogging
AT aminurrahmankhan inventorymodelforinstantaneouslydeterioratingitemswithmultipletradefacilitiesstockandpricedependentdemandandfullbacklogging
AT alialarjani inventorymodelforinstantaneouslydeterioratingitemswithmultipletradefacilitiesstockandpricedependentdemandandfullbacklogging
AT elawadyattia inventorymodelforinstantaneouslydeterioratingitemswithmultipletradefacilitiesstockandpricedependentdemandandfullbacklogging