An EOQ model for deteriorating items analyzing retailer’s optimal strategy under trade credit and return policy with nonlinear demand and resalable returns

Authors

DOI:

https://doi.org/10.11121/ijocta.2022.1025

Keywords:

Inventory, Trade credit policy, Resalable returns, Deteriorating item, Refund.

Abstract

This paper presents an EOQ model where demand is dependent upon time and selling price. In the proposed model of inventory, the retailer allows its unsatisfied customers to return their product whereas the manufacturer offers a full trade credit policy to the retailer. To make our model realistic, we have assumed that the product returned can be resold with the same selling price. Number of returns is a function of demand. In this proposed inventory model considering deterioration, the retailer does not fully reimburse its customers for the returned product. The primary purpose of this inventory model is to determine the optimal selling price, optimal order quantity, and optimal replenishment cycle length in order to maximize the retailer’s total profit earned per unit time. A numerical example is also presented and a sensitivity analysis is carried to highlight the findings of the suggested inventory model.

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Author Biographies

Mamta Kumari, Department of Mathematics, National Institute of Technology Silchar, Silchar -788010, India

Mamta Kumari has obtained her B.Sc. degree from Banaras Hindu University. She has obtained her M.Sc. degree from National Institute of Technology Durgapur. She is currently carrying out her doctoral research at National Institute of Technology Silchar. Her research area includes Operations Research, Inventory Management and Supply Chain Management.

Pijus Kanti De, Department of Mathematics, National Institute of Technology Silchar, Silchar -788010, India

Pijus Kanti De has obtained his M.Sc. and B.T. degrees from the University of Kalyani and received his M. Phil and Ph. D. degrees in Applied Mathematics from Indian School of Mines, Dhanbad (presently IIT Dhanbad). Presently he is employed as an Associate Professor in Mathematics in the National Institute of Technology Silchar. Before joining to NIT Silchar, Dr. De was employed in many other institutions like C-MMACS, National Aerospace Laboratories Bangalore, KIET Ghaziabad, Delhi College of Engineering (presently Delhi Technological University) and Banasthali University as a Senior Research Fellow, Lecturer, Sr Lecturer, Reader and Associate Professor. Dr. De has supervised several thesis at doctoral and master's level. Also Dr. De has adjudicated several doctoral thesis from different Universities. He has published many research articles and written a book, 'Computer Based Numerical Methods and Statistical Techniques'. His research areas include Operations Research, Optimization Techniques, Fuzzy Logic & Belief Theory, Fuzzy Optimization, Fuzzy Mathematics, Mathematical Modelling, Elasto-Dynamics and Numerical Methods.  

References

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Published

2022-01-02
CITATION
DOI: 10.11121/ijocta.2022.1025
Published: 2022-01-02

How to Cite

Kumari, M., & De, P. K. (2022). An EOQ model for deteriorating items analyzing retailer’s optimal strategy under trade credit and return policy with nonlinear demand and resalable returns. An International Journal of Optimization and Control: Theories & Applications (IJOCTA), 12(1), 47–55. https://doi.org/10.11121/ijocta.2022.1025

Issue

Vol. 12 No. 1 (2022): IJOCTA

Section

Research Articles

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Copyright (c) 2022 Mamta Kumari and Pijus Kanti De

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