Partial Trade-Credit Policy Under Preservation Technology: A Mathematical Analytic Approach to Inventory Models

Abstract

In this paper, we have proposed an inventory model for non-instantaneous deteriorating items. To reduce the rate of deterioration, retailers or vendors spend some money to prevent product degradation/decay, known as preservation technology, which is also inserted. In the sequel, the seller provides the buyers with a partial trade credit policy because the partial trade-credit policy is more efficient than a full trade-credit policy. After all, it reduces the possibility of loss for the lender. The main objective of this study is to reduce the total unit cost by determining the replenishment cycle time, order quantity, and preservation technology cost. The mathematical formulation and solution of all possible conditions of the partial trade-credit policy for deteriorating items have been inserted. Numerous theorems and lemmas have been inserted to obtain the optimal solution analytically. Several previous inventory models have been given as exceptional cases. Finally, numerical examples and managerial implications are incorporated to validate the proposed model.