Abstract

AN INVENTORY MODEL FOR NON-INSTANTANEOUS DETERIORATING ITEM WITH TIME DEPENDENT QUADRATIC DEMAND AND LINEAR HOLDING COST UNDER TRADE CREDIT POLICY

B. Babangida1 & Y. M. Baraya2

---

Abstract In this article, an inventory model for non-instantaneous deteriorating item with two components demand and linear time holding cost under trade credit has been developed. The demand rate is assumed to be time dependent quadratic before deterioration sets in after which it is considered as constant. Optimal cycle length and order quantity are determined so as to minimise total variable cost. The necessary and sufficient conditions for the existence and uniqueness of the optimal solutions are provided. Numerical examples are given to demonstrate the application of the model. Finally, sensitivity analysis of some model parameters on the decision variables have been carried out and the implications are discussed. In the discussions, suggestions toward minimizing the total variable cost of the inventory system are given. Keywords: Economic Order Quantity, Non- instantaneous deteriorating item, Quadratic demand, Linear Holding, Trade Credit Policy.

PDF