Cost Minimization Problem for Deteriorating Item With Stock Level Dependent Demand and Controllable Deterioration Under Trade Credit and Partial Backlogging.
Publication Date: 13/07/2025
Author(s): Danjuma Theophilus, Laminu Idris.
Volume/Issue: Volume 8, Issue 2 (2025)
Page No: 141-158
Journal: African Journal of Mathematics and Statistics Studies (AJMSS)
Abstract:
This paper studied cost minimization problem for deteriorating item where demand is stock level dependent, deterioration is controllable, vendor can offer trade credit and shortages are partially backlogged. We derived the objective function which is the total average cost function and solved the optimization problem by using optimization problem solver in MatLab. From the numerical examples and sensitivity analysis, we found that the optimal total average cost and the optimal ordered quantity are sensitive to the reduced deteriorating rate and initial demand parameters.
Keywords:
Trade credit, partial backlogging, Deterioration, Objective function, Minimization.
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