A PRODUCTION INVENTORY MODEL FOR DETERIORATING ITEMS WITH PRICE & GREEN SENSITIVE DEMAND AND ALLOWABLE SHORTAGES UNDER TWO-LEVEL TRADE CREDIT POLICY

Abstract

This paper considers production inventory model for deteriorating items with allowable shortages under two level trade credit policy. In the present time, green technology is the humming term in the business world. It is challenging for the business manager to seize the market by offering the most incredible green quality at a reasonable price in a specific economy. Here demand depends on linear selling prices and nonlinear green level. The effect of the reliability on the production system has been studied.      In this two-level trade credit policy manufacturer offers a full trade credit period to the retailer, and the retailer provides a partial trade credit to the customers. The main objective of this study is to obtain the optimal cycle length for maximum total average profit through genetic algorithm  approach. Finally, to illustrate the model and to show the effectiveness of the proposed approach, a numerical example is provided. A sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out.