Non Instantaneous Deteriorating Inventory Model under Credit Financing When Demand Depends on Promotion and Selling Price

Demand of product in the market depends upon its advertisement with selling price. In most of the models, it is assumed that items start deteriorating just after their production. But in real situation items generally maintain their quality for some time period. After that period decay in items starts. Customers get attracted towards heavy discounts during sales. In this model, it is assumed that more advertisement and heavy discount on products will lead to more demand. Buy now and pay later policies are applied to increase the profit for supply chain. An inventory model is developed to achieve ordering policy of non-instantaneous deteriorating items under credit policies. Shortages are not allowed. The aim of this model is to establish the optimal order quantity that maximizes the total profit. Some numerical examples and sensitivity analysis are shown to validate the results

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