INVENTORY POLICY FOR PERISHABLE PRODUCTS WITH PRICE-RELATED DEMAND, EXPONENTIAL DETERIORATION, FULL BACKLOGGING AND SHORTAGES

This study elaborates an inventory policy for perishable products where the products face exponential deterioration with time under the credit of trades. The demand rate is taken as a function of selling price and the delay in payment is permitted as per the order of quantity. Shortages are permitted and fully backlogged. The aim of the present study is to find the optimal ordering quantity of retailer and the optimal order cycle for optimizing the total profit. This study is also useful to find the optimal ordering scheme in the analysis of trade credit. A numerical example based on practical problems is presented which is helpful in the study of business decision making problems. A sensitivity analysis of the model is carried out for various parameters. The study concludes with a conclusion and an aspect at feasible future requirements