Optimal pricing and lot-sizing policy for a two-warehouse supply chain system with perishable items under partial trade credit financing

摘要

Usually, in real life business, supplier is willing to provide a retailer a trade credit period if the retailer orders a large quantity. So the retailer purchases more goods than that can be stored in his own warehouse and these excess quantities are stored in a rented warehouse. In practice, we observe that the demand depends on the selling price and the retailer offers the partial trade credit option to his customers. In this paper, we develop an economic-order-quantity-based model with perishable items and two-storage facility as a profit maximization problem under retailer’s partial trade credit policy and price dependent demand. Mathematical theorems are developed to determine optimal inventory policy for the retailer and numerical examples are given to illustrate the theory. We also obtain a lot of managerial phenomena.