|
|
 |
| |
|
|
|
An Inventory Model for Deteriorating Items with Preservation Technology and Quality-Dependent Demand under a Trade Credit Policy |
|
|
|
PP: 1197-1205 |
|
|
doi:10.18576/amis/200505
|
|
|
|
Author(s) |
|
|
|
Mohammed Wamique Hisam,
Mohammad Shahfaraz Khan,
Khaliquzzaman Khan,
Imran Azad,
S. Sindhuja,
Amir Ahmad Dar,
Aseel Smerat,
|
|
|
|
Abstract |
|
|
| This paper investigates the impact of deploying appropriate preservation technology in an inventory system where units deteriorate at a constant rate. Inventory management of deteriorating drugs has recently received much attention in hospitals: medicines must be kept securely so that they do not deteriorate and lose their effectiveness, since inadequate preservation and insufficiency of such medicines not only result in business losses but also have a major impact on patients. Trade credit can be considered as a type of price reduction in business. The proposed model assumes that suppliers provide full trade credit to retailers, but retailers only provide partial trade credit to their customers. Three cases are analyzed according to the relationship between the retailer’s cycle time and the credit periods offered by the supplier and to customers, and closed-form expressions for the total cost and the interest earned/charged are derived for each case. To illustrate the model, numerical examples based on real-time pharmaceutical distribution data, a sensitivity analysis, and graphical representations are given in this paper. |
|
|
|
|
|
|
|
