An inventory model for non-instantaneous deteriorating items with preservation technology and multiple credit periods-based trade credit financing via particle swarm optimization

The trade credit policy plays a significant role to minimize the risk or maximize the revenue from a business. Thus, the consideration of trade credit policy with single or multiple credit period(s) makes an inventory model more realistic. This work aims to establish a preservation technology-based non-instantaneous deteriorated inventory model considering multi-period-based trade credit policy and variable demand dependent on selling price of the item and displayed inventory level. For different credit periods, different rates of interest are charged. Also, different cases are investigated in formulating the mathematical model. Then to maximize the average profits in all these cases, different advanced variants of quantum-behaved particle swarm optimization techniques are applied. Thereafter all the cases of the proposed model are justified with the help of five numerical examples. Finally, in order to study the effect of the changes of different system parameters on the optimal policy, the sensitivity analyses are performed, and the work is concluded with some real-life implications and future research plans.

Automated summary

The study establishes a deteriorated inventory model based on preservation technology, considering multi-period trade credit policy and demand dependent on selling price and displayed inventory level. Advanced variants of quantum-behaved particle swarm optimization techniques are applied to maximize average profits, with sensitivity analyses performed to study the effects of changes in system parameters on optimal policy.