A Supply Chain Replenishment Inflationary Inventory Model with Trade Credit

This research work considers a problem of obtaining the optimal replenishment schedule in a supply chain with a parameter of credit period rate. The model is designed for time-dependent quadratic demand and deterioration. The model is generalized considering partially backlogged shortages under inflation. However, as a peculiar case, an example is aimed for a model without lost sales. Sensitivity analysis is performed to analyze the mathematical formulation, and numerical examples are examined to study the effect of inflation and the time value of money on the economic order quantity model. The model evaluates the optimal replenishment schedules for the single retailer and single supplier for a single product in the supply chain subject to inflation.