SUPPLY CHAIN INVENTORY MODEL FOR DETERIORATING PRODUCTS WITH MAXIMUM LIFETIME UNDER TRADE-CREDIT FINANCING

In this article, we analyze an economic order quantity (EOQ) model for deteriorating products, in which we assume that the deteriorating items not only deteriorate continuously, but also have their maximum lifetime and we determine the optimal solution of the total annual relevant cost in terms of some lemmas and investigate the obtained properties of the optimal solution, which leads to solution procedures that are simple and easy to understand. We then show that the total annual relevant cost is convex and this result is shown to imply that the optimal replenishment cycle time not only exists, but it also is unique. Finally, numerical examples are given to illustrate the theoretical results of this model. We also present a discussion of the sensitivity analysis of the optimal solution with respect to the key parameters. Furthermore, in the last section on concluding remarks and observations, we have cited many related recent works on the subject-matter of this investigation in order to provide incentive and motivation for making further advances along the lines of the supply chain management and associated inventory problems which we have discussed in this article.