Table of Contents
Journal of Industrial Engineering
Volume 2013, Article ID 672504, 18 pages
http://dx.doi.org/10.1155/2013/672504
Research Article

An Inventory Model with Finite Replenishment Rate, Trade Credit Policy and Price-Discount Offer

1Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore 721-102, India
2Department of Mathematics, Bhangar Mahavidyalaya, University of Calcutta, Kolkata 743-502, India
3Department of Mathematics, Jadavpur University, Kolkata 700-032, India

Received 25 December 2012; Revised 19 May 2013; Accepted 22 May 2013

Academic Editor: Paul C. Xirouchakis

Copyright © 2013 Biswajit Sarkar et al. 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.

Abstract

When some suppliers offer trade credit periods and price discounts to retailers in order to increase the demand of their products, retailers have to face different types of discount offers and credits within which they have to take a decision which is the best offer for them to make more profit. The retailers try to buy perfect-quality items at a reasonable price, and also they try to invest returns obtained by selling those items in such a manner that their business is not hampered. In this point of view, we consider an economic order quantity (EOQ) model for various types of time-dependent demand when delay in payment and price discount are permitted by suppliers to retailers. The models of various demand patterns are discussed analytically. Some numerical examples and graphical representations are considered to illustrate the model.