Jñānābha, Vol. 51 (1) (2021), (159-171)
INVENTORY MANAGEMENT IN INFLATIONARY ENVIRONMENT UNDER DELAY IN PAYMENTS WITH SHORTAGES
Pooja Meena¹ Sita Meena² Anil Kumar Sharma³ AND Ganesh Kumar⁴
¹,⁴Department of Mathematics, University of Rajasthan, Jaipur-302004, Rajasthan, India
²,³Department of Mathematics, R. R. Government College, Alwar-301704, Rajasthan, India
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(Received: May 11, 2021 ; Revised : May 22, 2021 ; In final form : June 03, 2021)
This paper, provides a replenishment strategy where demand rate is an algebraic function of time and selling price. The deterioration is taken constant over the ordering cycle time. Shortages are permitted and are partly backlogged. The aim of this model is to maximize the total profit under payment delays and inflation. An algorithm to determine the optimal selling price, optimal stockout length, optimal replenishment cycle time, and optimal closing inventory level is provided. Numerical examples, graphical representation, and sensitivity analysis are discussed to explain the proposed inventory model.
2010 Mathematics Subject Classifications: 90B05, 90B10, 90B15.
Keywords and phrases: Inventory model, deterioration, selling price, delay in payments, partial backlogged, inflation.