An Inventory Model for Non-Instantaneously Deteriorating Items with Nonlinear Stock-Dependent Demand, Hybrid Payment Scheme and Partially Backlogged Shortages Academic Article in Scopus uri icon

abstract

  • © 2022 by the authors. Licensee MDPI, Basel, Switzerland.This research work presents an inventory model that involves non-instantaneous deterioration, nonlinear stock-dependent demand, and partially backlogged shortages by considering the length of the waiting time under a hybrid prepayment and cash-on-delivery scheme. The corresponding inventory problem is formulated as a nonlinear constraint optimization problem. The theoretical results for the unique optimal solution are presented, and eight special cases are also identified. Moreover, a salient theoretical result is provided: a certain condition where the optimal inventory policy may or may not involve deterioration. Finally, two numerical examples are provided using a sensitivity analysis to show the validity range of the inventory parameters.

publication date

  • February 1, 2022