Two Level Trade Credit Criteria and Discount Policy for Deteriorating Items with Linearly Increasing Demand

In order to increase retailer profits, this study presents an inventory system designed for trended demand and assuming linear temporal dependence.It takes into account predetermined credit durations from suppliers and credit periods for customers to represent the actual market dynamics.Sensitivity analysis helps determine which inventory parameters are most important to optimise.The usefulness of the model is validated with a numerical example.The work advances inventory management by addressing the intricacies of credit-based and time-dependent demand transactions.Performance and profitability are maximised by the model through a methodical evaluation of parameter modifications.Findings show how accurately the model represents credit transactions and demand patterns, facilitating well-informed decision-making.In summary, this study provides retailers with a strategic framework to effectively handle inventory, satisfy consumer expectations, and optimise profits in ever-changing market conditions.

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Publication Details

Journal
International Journal of Research Publication and Reviews
Published
2025-05-01
DOI
https://doi.org/10.55248/gengpi.6.sp525.1931
Primary Topic
Working Capital and Financial Performance
Type
article
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article

Two Level Trade Credit Criteria and Discount Policy for Deteriorating Items with Linearly Increasing Demand

Ashendra Kumar Saxena, Khyati Khyati
International Journal of Research Publication and Reviews
Working Capital and Financial Performance
article

Two Level Trade Credit Criteria and Discount Policy for Deteriorating Items with Linearly Increasing Demand

Ashendra Kumar Saxena, Khyati Khyati
article en

Abstract

In order to increase retailer profits, this study presents an inventory system designed for trended demand and assuming linear temporal dependence.It takes into account predetermined credit durations from suppliers and credit periods for customers to represent the actual market dynamics.Sensitivity analysis helps determine which inventory parameters are most important to optimise.The usefulness of the model is validated with a numerical example.The work advances inventory management by addressing the intricacies of credit-based and time-dependent demand transactions.Performance and profitability are maximised by the model through a methodical evaluation of parameter modifications.Findings show how accurately the model represents credit transactions and demand patterns, facilitating well-informed decision-making.In summary, this study provides retailers with a strategic framework to effectively handle inventory, satisfy consumer expectations, and optimise profits in ever-changing market conditions.

International Journal of Research Publication and ReviewsVol. 6(sp5)
Openalex Percentile: Top 80%
Working Capital and Financial Performance
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Two Level Trade Credit Criteria and Discount Policy for Deteriorating Items with Linearly Increasing Demand — Ashendra Kumar Saxena, Khyati Khyati · International Journal of Research Publication and Reviews (2025) | TGRS Research Map | TGRS