A Comparative Study Between Inventory Followed by Shortages and Shortages Followed by Inventory Under Trade-Credit Policy

Abstract

This paper deals with a comparison between inventory followed by shortages model and shortages followed by inventory model with variable demand rate. It is assumed that the stock deteriorates over time which follows a two parameter Weibull distribution. Both the models are assumed fixed trade credit period to the retailer from the supplier. The model is solved analytically and the results are illustrated with numerical examples.