A Deterministic Inventory Model for Deteriorating Items with Price Dependent Demand and Time Varying Holding Cost under Trade Credit
Mukesh Kumar1, Anand Chauhan2, Rajat Kumar3
1Mukesh Kumar, Department of Mathematics Graphic Era University, Dehradun (Uttarakhand), India.
2Anand Chauhan Department of Mathematics Graphic Era University, Dehradun (Uttarakhand), India.

3Rajat Kumar, Department of Mathematics, Krishna Institute of Management and Technology, Muradabad (UP), India.
Manuscript received on January 22, 2012. | Revised Manuscript received on February 10, 2012. | Manuscript published on March 05, 2012. | PP: 99-105 | Volume-2 Issue-1, March 2012. | Retrieval Number: A0376012111 /2012©BEIESP
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: In this proposed research, we developed a deterministic inventory model for price dependent demand with time varying holding cost and trade credit under deteriorating environment, supplier offers a credit limit to the customer during whom there is no interest charged, but upon the expiry of the prescribed time limit, the supplier will charge some interest. However, the customer has the reserve capital to make the payments at the beginning, but decides to take the benefit of the credit limit. This study has two main purposes, first the mathematical model of an inventory system are establish under the above conditions. Second this study demonstrate that the optimal solution not only exists but also feasible. Computational analysis illustrates the solution procedure and the impact of the related parameter on decision and profits.
Keywords: Deterioration, price dependent Demand, Trade credit, time varying holding cost.