SUPPLY CHAIN INVENTORY MODEL FOR MULTI- ITEMS WITH UP-STREAM PERMISSIBLE DELAY UNDER PRICE SENSITIVE QUADRATIC DEMAND

Abstract

This paper deals with a two-level supply chain comprising of single manufacturer and single retailer who sells multi-items. The units in inventory of each period are subject to deterioration at a constant rate. The manufacturer has finite production capacity and manufacturing proportional to the demand rate. The manufacturer offers credit period to the retailer. Price sensitive quadratic demand is debated here which is suitable for the items whose demand increase initially and after some time it starts to decrease. Here, comparison between independent and joint decision is studied regarding their decision variables and average profits. The classical optimization is used to optimize the total profit of the supply chain with respect to selling price and cycle time. The model is supported with numerical examples and also established best scenario and best policy of the model. Sensitivity analysis is done to deduce managerial insights. It is observed that the players are encouraged to join hand to hand to run a business by joint decisions.