Optimal strategy for an integrated inventory system involving variable production and defective items under retailer partial trade credit policy

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Optimal strategy for an integrated inventory system involving variable production and defective items under retailer partial trade credit policy
Abstract: This paper investigates an integrated inventory modelwith variable production rate and price-sensitive demand rate under two-level trade credit. Themodel considers two-level trade credit policy inwhich the retailer receives a full trade credit from its supplier, and offers partial trade credit to its customers. It is assumed that an arrival order lot may contain some defective items and the number of defective items is a random variable. This study attempts to offer a best policy for retail price, the replenishment cycle, and the number of shipment fromthe supplier to the retailer in one production run that aims atmaximizing the joint expected total profit per unit time. An algorithmis designed to identify the optimumsolution of the proposed model. Numerical examples are included to illustrate the algorithmic procedure and the effect of key parameters is studied to analyze the behavior of the model.
Keywords:	Supplier–retailer inventory system Trade credit Defective items Variable production
Author(s):	.
Source:	Decision Support Systems 54 (2012) 235–247
Subject:	تولید
Category:	مقاله مجله
Release Date:	2012
No of Pages:	13
Price(Tomans):	0
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