Journal of Business and Management Sciences
ISSN (Print): 2333-4495 ISSN (Online): 2333-4533 Website: http://www.sciepub.com/journal/jbms Editor-in-chief: Heap-Yih Chong
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Journal of Business and Management Sciences. 2014, 2(3A), 1-16
DOI: 10.12691/jbms-2-3A-1
Open AccessResearch Article

The Impact of Promotional Activities and Inflationary Trends on a Deteriorated Inventory Model Allowing Delay in Payment

Bhanupriya Dash1, Monalisha Pattnaik2, and Hadibandhu Pattnaik3

1Lecturer in Mathematics, Kamala Nehru Womens’ College, Bhubaneswar

2Department of Business Administration, Utkal University, Bhubaneswar, India

3Department of Mathematics, KIIT University, Bhubaneswar

Pub. Date: August 26, 2014
(This article belongs to the Special Issue Emerging Trends in Production Research: Concepts and Cases)

Cite this paper:
Bhanupriya Dash, Monalisha Pattnaik and Hadibandhu Pattnaik. The Impact of Promotional Activities and Inflationary Trends on a Deteriorated Inventory Model Allowing Delay in Payment. Journal of Business and Management Sciences. 2014; 2(3A):1-16. doi: 10.12691/jbms-2-3A-1

Abstract

A deteriorating inventory model allowing delay in payment, promotional activities and inflation is developed. This arises as a result of the time gap in between the time of estimation and the starting time of economic order quantity (EOQ) system and promotional activities with a permissible delay in payment will affect the inventory total cost. Moreover, the political volatility of a country leads to a much more unstable situation in the present world economy. So a change in inflation takes place. The objective of this inventory model is to minimize the total inventory cost allowing promotional activities and delay in payment for deteriorating items under inflation with shortages. The numerical analysis shows that an appropriate policy can be benefited the retailer for deteriorating items. Finally, sensitivity analysis of optimal solution with respect to the major parameters are also studied.

Keywords:
inventory model deterioration promotion inflation delay in payment EOQ shortages

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