Establishment of EOQ strategy for time-sensitive deterioration and non-increasing time-linked demand under trade credits

摘要

The retailer makes a decision, the initial holding cost at the beginning of each replenishment cycle and then concludes whether and how to change the carrying costs during the cycle. Thus, during each cycle, items are sold before and after the carrying cost modification at two costs: the initial holding cost and the used holding cost. Of course, the two prices may be the same if the retailer chooses not to change prices. In this study, an inventory model is established under time linked demand and deterioration. Carrying cost is considered exponential time dependent. Mathematical formulation is given to build up the model. The numerical examples are discussed to authenticate the model projected in this study. Some results based on optimal solution are also discussed. We then show that the total cost is curved upward by means of cycle time. The sensitivity investigation is also established.