An EOQ model for three parameter Weibull deterioration with permissible delay in payments and associated salvage value

• Main Authors: L. M. Pradhan, C.K. Tripathy
• Format: Article
• Language: English
• Published: Growing Science 2012-01-01
• Series: International Journal of Industrial Engineering Computations
• Subjects: Weibull deterioration; Salvage value; Permissible delay in payments
• Online Access: http://www.growingscience.com/ijiec/Vol3/IJIEC_2011_40.pdf

This paper deals with the development of an inventory model for Weibull deteriorating items with constant demand when delay in payments is allowed to the retailer to settle the account against the purchases made. Shortages are not allowed and the salvage value is associated with the deteriorated units. In this paper, we consider two cases; those are for the case payment within the permissible time and for payment after the expiry of permissible time with interest. Numerical examples are provided to illustrate our results. Sensitivity analysis are carried out to analyze the effect of changes in the optimal solution with respect to change in one parameter at a time.