Effect of Variable Inflation on Supply Chain Management in FMCG Sector with Single Supplier-Multiple Retailers and Trade Credit

Abstract

The main contribution of this article is to inspect the role of variable inflation rate in every replenishment cycle in supply chain management. An inventory, time, and inflation-dependent demand are contemplated. Some completely novel concepts are introduced. Inflation and its effect are studied in every single replenishment cycle, furthermore, equipoise is attained under a single supplier – multiple retailers’ coordination in a highly dynamic and competitive free market. Moreover, the equipoise cost of the retailer is used to ultimately reduce the costs of both the supplier and retailers. The algorithms are discussed in detail to understand the working of our new model, which is close to real-world based problems encountered in inventory management. Numerical examples are discussed in support of theoretical aspects mentioned with the help of Mathematica software 12.0