A Replenishment inventory model for items under time-varying demand rates considering trade credit period and cash discount for a finite time horizon

摘要

Many researchers have developed various economic ordering quantity models by assuming an infinite time horizonudand constant demand rate. However due to rapid technological advancement, shorter product life cycle and severeudcompetition, those assumptions are no longer realistic. In this paper, we complement that shortcoming by consideringudan inventory model that satisfies a continuous time-varying demand rate for a finite time horizon when trade creditudperiod and unit cash discount are allowed. The time horizon consists of n different cycles with equal or different cyclesudlength. The trade credit period was assumed to be proportional to the cycle length. We developed mathematical modelsudand presented a numerical example to support the effectiveness of these models.