Abstract:
The effective management of permissible payment delays and credit interest is a crucial aspect
of financial inventory control. This research delves into payment policies such as acceptable
credit terms, permissible payment delays, and interest rates on overdue payments in the
context of managing perishable and non-perishable inventory items. The primary aim of our
study is to formulate a total cost minimization problem with respect to optimal cycle time and
ordering quantities, considering time-, price discount-, and advertisement-dependent demand
patterns to simulate real-world scenarios. In today’s highly competitive market, determining
optimal ordering policies and pricing strategies is paramount. Suppliers employ various
tactics, including incentives for retailers and advertising, to boost sales.We specifically examine
the impact of permissible payment delays within the framework of trade-credit policies,
which can significantly benefit businesses. Additionally, our model incorporates practical
elements such as partial backlogged shortages, lost sales, instantaneous replenishment, an
infinite time horizon, and constant lead times. The objective of the current paper is to develop
advanced inventory models that account for demand patterns influenced by time, price discounts,
and advertisements, while incorporating trade-credit policies for both perishable and
non-perishable items. By analyzing the objective functions, we derive optimal solutions for
various scenarios within the inventory problem. An SGO (Swarm-based Global Optimization)
algorithm is proposed to demonstrate the applicability of the developed models and
to minimize the retailer’s total costs. Additionally, a comparative analysis of trade-credit
policies for perishable and non-perishable items is conducted to highlight their respective
impacts. We provide numerous numerical examples to validate our statistically independent
processes and offer graphical analyses of the convexity of each nonlinear objective function.
Our findings emphasize the substantial influence of each parameter on the optimal total cost
within the proposed model. The findings indicate that as demand becomes increasingly sensitive
to price, time, and advertisement, the benefits of coordination in inventory management
are significantly enhanced, particularly in conjunction with trade-credit policies