A Multi-cycle inventory control model for deteriorating items with partial backlogging under trade credit
Zhonghui Li- 1Guangxi University of Finance and Economics, China
- 2Walailak University, Thailand
- 3Guangxi Academy of Agricultural Science, China
- 4Guangxi University, China
The finite horizon should be considered for products with limited life cycle. To introduce this possibility, multiple orders and partial backlogging policies are established under trade credit in an inventory model, where the demand is a time-varying function and the backlogging rate is a decreasing function about the customer’s waiting time. This paper presents lemmas and theories to determine the optimal replenishing time and the backlogging time to maximize the total profit for the retailer. A search algorithm for solving the optimal order strategy is proved on the basis of the theoretical results. Numerical examples are presented and the optimal order strategy is obtained. Sensitivity analysis of the main parameters is carried out. The effects of total profit on main parameter of trade credit is analysed from macroscopic and microscopic perspectives.
Keywords: Multi-cycle, Inventory Control Model (ICM), Shortages, Partial backlogging, Trade credit, Deterioration
Received: 28 Jul 2022;
Accepted: 31 Aug 2022.
Copyright: © 2022 Li, Chamchang, Niu and Mo. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: PhD. Zhonghui Li, Guangxi University of Finance and Economics, Nanning, Guangxi Zhuang Region, China