Abstract

Today, in the era of competition and market globalization, there is pressure on companies to increase sales and revenue, so managers try to maximize the company’s profit by using maximum cash flow. In today’s business transactions, the company asks the manufacturer for payment as its sales increase through an advance-cash-credit (ACC) payment plan. This research presents a selling price-dependent demand inventory model with deteriorating items with expiration dates under an advanced cash credit payment policy. The main objective of the proposed model for the retailer is to maximize profit per unit of time and determine the optimal cycle time and order quantity. Numerical examples have been studied to illustrate the value of the proposed model. Sensitivity analysis is used to investigate the effects of parameter changes brought on by market uncertainty.

Author: Dhir Singh, Amit Kumar, Satish Kumar, and Vipin Kumar

Received on: October, 2023

Accepted on: June, 2024