AN EOQ MODEL FOR DETERIORATING ITEMS UNDER PERMISSIBLE DELAY IN PAYMENTS WHEN SUPPLY IS RANDOM

Abstract

In classical EOQ model, it is assumed that the quantity requisitioned is same as the quantity ordered,payment of the goods is made as soon as it is received by the system and units in inventory are not subject to deterioration. In the present article, an attempt is made to develop an inventory model when retailer announces delay in payments, units in inventory are subject to constant rate of deteriorationunder random input. A developed model is supported by a hypothetical numerical to study interdependence of parameters on the decision variables and objective function.