An Integrated Inventory Model for Deteriorating Items under Cash Discount and Permissible Delay in Payments

Numerous studies have been undertaken to explain inventory models with different features. While findings from earlier studies have been conflicting, recent industrial-level studies indicate that multi features inventory models have a positive impact on business scenario. We propose an inventory model with integration of many real features like constant deterioration under cash discount scheme and permissible delay in payments. That is, we want to investigate the buyer’s optimal replenishment policy with quadratic demand under trade credit and cash discount to maximise joint total profit per unit time. Furthermore, numerical example and sensitivity analysis are presented to illustrate the results of the proposed model and to draw managerial insights.