Effect of credit financing on the supply chain for imperfect growing items

Department of Mathematics, Amity Institute of Applied Sciences, Amity University Uttar Pradesh, Noida, India

^* Corresponding author: mittal_mandeep@yahoo.com; mmittal@amity.edu

Received: 4 October 2021
Accepted: 28 July 2022

Abstract

Several EOQ models have developed over time to guarantee that the appropriate quantity of inventory is ordered in every batch, so that a firm does not have to place orders too frequently or have an excess of inventory on hand. Inventory management, or the inspection of the ordering, storing, and utilization of a company’s inventory, necessitates the use of EOQ models. This paper aims at developing an EOQ model when the supplier offers the trade credit policy to the buyer, for a particular class of items that is, growing items. However, it is not always necessary for all goods to be of perfect quality. There may also be some defective goods. Keeping this in mind, a wide-ranging scientific model has been intended, followed by a specific numerical model which is represented with the help of numerical examples. Sensitivity research is presented to assess the influence of the model’s key factors taking into consideration it’s decision variables and the objective function.