Poonam Mishra* | Azharuddin Shaikh
OPEN ACCESS
This paper is an attempt to model integrated inventory system consisting of single manufacturer, single retailer dealing with constantly deteriorating item. In order to control the rate of deterioration retailer invests in preservation and maintenance management. Manufacturer offers a trade credit period to the retailer with an agreement that retailer has to share fraction of profit earned during this credit period. Retailer also extends partial trade credit period to the end customers to boost the demand. The objective of this paper is to maximize the total joint profit of manufacturer and retailer with respect to cycle time, credit period and preservation technology investment. Numerical examples are given to validate the model and sensitivity analysis of inventory parameters is done to understand their effect. Outcome of this paper is applicable to fast moving goods like Electronic gadgets, Fashion accessories, Clothing, Footwear, fruits, vegetables and dairy products etc.
Deterioration, integrated model, permissible delay, preservation technology investment, profit sharing contract
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