A two-warehouse inventory model with price-sensitive demand under delay in payments at the reorder point

摘要

When suppliers promote new product, they often allow that retailers can pay at the reorder point. So this paper is based on permissible delay in payments at the reorder point, and this paper studies a two-warehouse inventory model when the demand is linear trend with the sales price. Then, the retailers' inventory system is investigated as a profit maximization problem to determine the optimal ordering policy. Finally, a numerical example is given to verify the validity of the model.