Economic order quantity model for deteriorating items with imperfect quality and permissible delay on payment

摘要

In the classical inventory models, most of the time the issue of quality has not been considered.However, in realistic environment, it can be observed that there may be some defective items inan ordered lot, because of these defective items retailer incurs additional cost due to rejection,repair and refund etc. Thus, inspection/screening of lot becomes indispensible in most of theorganizations. Moreover, it plays a very essential role when items are of deteriorating in nature.Further, it is generally assumed that payment will be made to the supplier for the goodsimmediately after receiving the consignment. Whereas, in practice, supplier does offers acertain fixed period to the retailer for settling the account. During this period, supplier chargesno interest, but beyond this period interest is being charged as has been agreed upon. On theother hand, retailer can earn interest on the revenue generated during this period. Keeping thisscenario in mind, an attempt has been made to formulate an inventory model for deterioratingitems with imperfect quality under permissible delay in payments. Results have been validatedwith the help of a numerical example using Matlab7.0.1. Comprehensive sensitivity analysishas also been presented.