Abstract:
In the research document, I have analysed a deterministic inventory model, using a demand rate that varies over time, including deterioration of items that start after passing some particular time. Time to credit the amount is also available, for that time there is no interest to charge. But after that time highly interest rate will be applicable on remain amount. As per strategy, Vendor has some reserved money to pay initial payment but to accumulate large amount or benefit he use time of credit limit at most. First, I given a mathematical inventory model to understand behaviour of system after that I find optimal solution in different scenarios. To verification of model, there is numerical fitting in the article. Graphical presentations also show relationship between parameter and revenue
Keywords: