An inventory model with time dependent demand under inflation and trade credits

Abstract

The traditional inventory model assumes that a retailer accepts the offer of delay in payments since he does not have the capital with him. Even when he has to make the payments at the end of credit limit, he takes a loan to pay off the supplier. The model focuses on commodities having quadratic demand with trade credit policies. The commodities considered in this model are perishable stock whose deterioration starts immediately as soon as you store the items. We have considered all the factors which one retailer must kept in mind deciding his inventory level, the concept of inflation and time value of money is also considered.