Research On Deterministic Inventory Models Under Two-level Trade Credit Strategy

With the development of economic globalization and the increasingly fierce competition among enterprises, the inventory management plays a significant part in business operation and attracts broad attention of managers. Nowadays, the trade credit strategy is important to the enhancement of competitiveness and has great influence on business operation. Therefore, the research on the optimal control of inventory under trade credit has great practical significance. The main work is as follows.(1) The inventory problem of demand relying on the current inventory level is studied under two-level trade credit. An inventory model for deteriorating items is established, in which the demand is influenced by the inventory level above a certain amount, otherwise the rate of demand will become a constant. Furthermore, a method for searching the optimal order quantity is presented based on the analysis of the model. Finally, some numerical examples are given to validate the feasibility of the model, and the effects of some changing parameters on the optimal order strategy are analyzed.(2) The economic order quantity problem of deteriorating items with the stock-dependent demand is investigated under trade credit, in which the trade credit period depends on the order quantity and the demand rate is a linear function of stock level. Based on the analysis and discussion of the model, the existence of the optimal ordering cycle is presented. Numerical examples are given to validate the efficiency of the model and the method, and sensitivity analysis is made on some parameters.(3) The inventory model is established with consideration of time-varying customer demand of two retailers, in which one retailer adopts the stragety of anvance sales and customers of the other retailer are attracted. Then, the existence of optimal solution is discussed and the method for solving the model is given. Some numerical examples are presented to validate the model, and the influence of some changing parameters on the optimal order cycle and the optimal profit is analyzed.