Weibull deterioration, trade credit, sensitivity analysis, inventory
The aim of this study is to develop mathematical model for Weibull deterioration of items in inventory in declining market when the supplier offers his retailers a credit period to settle the accounts against the dues. The computational steps are explored for a retailer to determine the optimal purchase units which minimizes total inventory cost per time unit. The numerical examples are given to demonstrate the retailerâ€™s optimal decision. A sensitivity analysis is carried out to study the variations in the optimal solution.
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