Universal Journal of Accounting and Finance Vol. 8(3), pp. 65 - 74
DOI: 10.13189/ujaf.2020.080302
Reprint (PDF) (439Kb)

An Inventory Model on Preservation Technology with Trade Credits under Demand Rate Dependent on Advertisement, Time and Selling Price

Mukesh Kumar ¹, Anand Chauhan ¹, S. J. Singh ¹, Manoj Sahni ^2,*
1 Department of Mathematics, Graphic Era (Deemed to be University), 566/6 Bell Road Clement Town, Uttarakhand, India
² Department of Mathematics, School of Technology, Pandit Deendayal Petroleum University, Koba Institutional Area, India

ABSTRACT

In this paper, we propose a manufacturing reliability inventory model in which demand depends on the factors advertisement, time, and selling price. Here we consider lead time is zero, and shortages are not allowed. The manufacturing rate depends on the order level. In a real-life situation, the supplier offers a credit limit to the customer during there is no interest charged. Still, upon the expiry of the prescribed time limit, the supplier will charge some interest. However, the customer has the reserve capital to initially make the payments but decides to benefit from the credit limit. The most critical factor, i.e. deterioration plays a significant role in the field of inventory. Here we consider it a constant rate of decline, and the resources of degradation are essential in several inventories. It is assumed that non-instantaneous deteriorating substances are reserved at a holding charge. The whole study is based on preservation techniques, trade credits, demand, inflation, and deterioration. This study has two primary purposes; first, the mathematical model of an inventory system is established under the above conditions. Second, this study demonstrates that the optimal solution not only exists but also remains feasible. A numerical example validates the proposed model, and the graphs are plotted, and its analysis is done. This study is beneficial in industries for the production of food products and fashionable items, etc.

KEYWORDS
Reliability Advertisement, Trade Credit (Permissible Delay Period), Manufacture, Inflation, Deterioration Rate

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Mukesh Kumar , Anand Chauhan , S. J. Singh , Manoj Sahni , "An Inventory Model on Preservation Technology with Trade Credits under Demand Rate Dependent on Advertisement, Time and Selling Price," Universal Journal of Accounting and Finance, Vol. 8, No. 3, pp. 65 - 74, 2020. DOI: 10.13189/ujaf.2020.080302.

(b). APA Format:
Mukesh Kumar , Anand Chauhan , S. J. Singh , Manoj Sahni (2020). An Inventory Model on Preservation Technology with Trade Credits under Demand Rate Dependent on Advertisement, Time and Selling Price. Universal Journal of Accounting and Finance, 8(3), 65 - 74. DOI: 10.13189/ujaf.2020.080302.