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Optimal pricing and ordering policy for perishable items with limited storage capacity and partial trade credit. (English) Zbl 1259.90004

Summary: A. Thangam and R. Uthayakumar [Oper. Res., Int. J. 10, No. 2, 133–161 (2010; Zbl 1195.90010)] investigated perishable items with limited storage capacity under a partial trade credit policy. For simplification, they used Taylor series approximations to derive their solution procedures. In our paper, we develop an exact solution procedure that avoids the problem of assuming that the deterioration rate is small, thereby improving the accuracy of the solution but more fundamentally increasing the practical relevance of the solution.

MSC:

90B05 Inventory, storage, reservoirs

Citations:

Zbl 1195.90010