Inventory Model with Truncated Weibull Decay Under Permissible Delay in Payments and Inflation Having Time Dependent Demand

Abstract

It is well known that the stock analysis in ware-houses, market yards, retail outlets and several other industries is analyzed through inventory models. This paper addresses the problem of obtaining optimal ordering quantity of an inventory system when the supplier offers the retailer a trade credit when the life time of the commodity is random and follows a truncated Weibull distribution and demand is a power function of time. The instantaneous state of inventory and the optimal policies of the inventory system are derived. The effect of change in input parameters and costs on optimal policies are also studied through numerical illustration. It is observed that the decay distribution and inflation have influence on the total cost function and optimal ordering quantities. This model includes some of the earlier models as special cases.