Decision support system for customers during availability of trade credit financing with different pricing situations

¹ Department of Mathematics, The University of Burdwan, Burdwan 713104, India
² Department of Mathematics, Chandrapur College, Chandapur, Burdwan 713145, India
³ Department of Industrial Engineering, Yonsei University, 50 Yonsei-ro, Sinchon-dong, Seodaemun-gu, Seoul 03722, South Korea

^* Corresponding author: bsbiswajitsarkar@gmail.com

Received: 11 July 2020
Accepted: 25 January 2021

Abstract

This study introduces an inventory system with a non-instantaneous deteriorating product with credit facility and variable demand depending on the selling price. Two different selling prices are considered in the deterioration and non-deterioration periods. Shortages are partially backlogged and dependent on the length of the customers’ waiting time upto the arrival of fresh lot. Alternative trade-credit policy is applied herein, and several cases, sub-cases and situations are investigated. The corresponding optimization problems of different cases, sub-cases and situations are solved using an interval-oriented multi-section technique with the help of interval mathematics and interval order relations. A numerical example with three different credit periods is studied and solved to validate the said problem. Also, two different case studies are investigated. Then to investigate the effect of changes of several system parameters on the optimal policy, post optimality analyses are performed.