EOQ Model with Cash Flow Oriented and Quantity Dependent Under Trade Credits

Inventory models in which the demand rate depended on the stock are based on the common real-life observation that greater product availability tends to stimulate more sales. In this study, we develop an inventory model to determine an optimal ordering policy for quantity dependent demand rate and time dependent holding cost items with delay in payments permitted by the supplier under inflation and time discounting. Mathematical models have been derived under two situations. These situations are: Case I: cycle time greater than or equal to permissible delay period and Case II: cycle time less than permissible delay period. Finally, numerical example is given to illustrate the proposed model.