Authors:
Zeba Khanam,Md. Ayub Ali,DOI NO:
https://doi.org/10.26782/jmcms.2019.12.00039Keywords:
EOQ,price dependent demand,advance payment,partial backlogged shortage.,Abstract
Advance payment is the important issue in inventory analysis. Due to advance payment another important issue is the capital money. The main aim of this paper is to introduce advance payment concept in the analysis of inventory problem. Annual demand has been considered to developed this model. Also, we have considered the product deteriorate constantly after the certain time period. Due to advance payment supplier may offer to his retailers’ instalment facility. However, purchasing amount must pay before received the lot size. Shortages are allowed partially with the constant backlogging rate. Due to the high nonlinearity of the corresponding optimization problem, we cannot able to find the closed form solution of the objective function. To overcome this difficulties, we have used LINGO 18 software for solving the proposed inventory problem. To validate the proposed model, one numerical examples have been solved. Finally, the effects of changes of different parameters have been studied graphically of the proposed model and a fruitful conclusion has been drawn.Refference:
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