Table of Contents
International Journal of Manufacturing Engineering
Volume 2013 (2013), Article ID 439190, 8 pages
Research Article

Integrated Inventory Model for Deteriorating Items with Price-Dependent Demand under Quantity-Dependent Trade Credit

Department of Mathematics, Government Arts College, Udumalpet, Tirupur District, Tamil Nadu 642126, India

Received 12 March 2013; Accepted 1 October 2013

Academic Editors: A. Che and G. Onwubolu

Copyright © 2013 Karuppuchamy Annadurai. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper explores an integrated inventory model when the deterioration rate follows exponential distribution under trade credit. Here, it is assumed that demand rate is a function of selling price and the permissible delay in payment depends on the order quantity. In the model shortages are completely backlogged. The maximization of the total profit per unit of time is taken as the objective function to study the retailer’s optimal ordering policy. This paper also presents a practical application example where the proposed inventory model is utilized to support business decision making. Particularly, the model developed in the paper could be useful in the area of supply chain management. Finally, sensitivity analysis of the optimal solution with respect to major parameters is carried out. Our result illustrates that this model can be quite useful in determining the optimal ordering policy when the trade credit period is being analyzed.