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Optimal Pricing, Shipments and Ordering Policies for Single-Supplier Single-Buyer Inventory System with Price SensitiveStock-Dependent Demand and Order-Linked Trade Credit
Dr. Nita H. Shah, Dushyantkumar G. Patel, Digeshkumar B. Shah
Volume 13 Issue 1
Global Journal of Research in Engineering
Volume 13 Issue 1
Global Journal of Research in Engineering
The integrated inventory policy of single-supplier single-buyer is studied under orderdependent trade credit terms. The demand is assumed to be price-sensitive stock-dependent. Under order-dependent trade credit scenario, the buyer is eligible for settlement of account at a allowable delay period if the order quantity is larger than that of pre-specified order by the supplier. The objective is to maximize joint profit of the supply chain with respect retail price of the unit and order time and number is given to compute optimal decision policy. The numerical example is given to illustrate the mathematical concept. Sensitivity analysis is carried out to deduce managerial insights.
