<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Financial capability is one of the primary drivers for buyers to make purchases. Therefore, sellers must set an optimum selling price and consider trade credit facilities to attract more demand. This paper proposes an inventory decision model in which customer demand depends on the price and number of credit installments to serve low-abled buyers. This study has developed a demand function with a positive impact on installment policies and the effect of the selling price. Two models have been formulated to optimize the selling price and positive stock time, m total profit, with and without installment policies. Then, numerical examples and sensitivity analysis illustrate the proposed model for different cases. The study has found that the selling price and positive stock time can be optimized. Profits can be higher in the case of an installment facility than in the case without an installment facility. It shows positive responses from the buyer to the installment policy.</p>
</abstract>

Financial capability is one of the primary drivers for buyers to make purchases. Therefore, sellers must set an optimum selling price and consider trade credit facilities to attract more demand. This paper proposes an inventory decision model in which customer demand depends on the price and number of credit installments to serve low-abled buyers. This study has developed a demand function with a positive impact on installment policies and the effect of the selling price. Two models have been formulated to optimize the selling price and positive stock time, m total profit, with and without installment policies. Then, numerical examples and sensitivity analysis illustrate the proposed model for different cases. The study has found that the selling price and positive stock time can be optimized. Profits can be higher in the case of an installment facility than in the case without an installment facility. It shows positive responses from the buyer to the installment policy.

An Inventory Model with Price and Credit Installments-Dependent Demand

Management Systems in Production Engineering

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"An Inventory Model with Price and Credit Installments-Dependent Demand"}

Financial capability is one of the primary drivers for buyers to make purchases. Therefore, sellers must set an optimum selling price and consider trade credit...

An Inventory Model with Price and Credit Installments-Dependent Demand

Publié en ligne: 03 mai 2023

Pages: 111 - 127

Reçu: 01 août 2021

Accepté: 01 avr. 2023

DOI: https://doi.org/10.2478/mspe-2023-0014

© 2023 Md. Rakibul Hasan et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.