Economic Ordering Policies of Linearly Time-Dependent Deteriorating Items with an Exponential Demand Rate under Credit Financing
- *Corresponding Author:
- R. P. Tripathi
Head of the Department
Department of Mathematics
Graphic Era University
Dehradun 248001, India
E-mail: [email protected]
Received Date: October 02, 2012; Accepted Date: November 22, 2012; Published Date: November 24, 2012
Citation: Tripathi RP, Shukla HS, Shukla V, Yadav SK (2012) Economic Ordering Policies of Linearly Time-Dependent Deteriorating Items with an Exponential Demand Rate under Credit Financing. J Applied Computat Mathemat 1:119. doi: 10.4172/2168-9679.1000119
Copyright: © 2012 Tripathi RP, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
This paper presents the economic ordering policies of linearly time-dependent deteriorating items with an exponential demand rate in the presence of trade credit using Discount Cash Flow (DCF) approach. Mathematical models are derived under two different situations: Case (1) Instantaneous cash flows, and Case (2) Fixed credit period. The expressions for on inventory systems present the value of all future cash flows are derived for these two cases. The main purpose of this paper is to obtain the optimal (minimum) present values of all future cash flows for both cases. The sensitivity analysis is given for the applicability of the purposed model. Mathematical software is used for finding numerical values of optimal cycle time with different discount rate and different credit period.