A Lot-Sizing Model for Non-Instantaneous Deteriorating Products Under Advance Payment and Non-Linear Partial Backlogging

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Tavassoli Sara; Manavizadeh Neda; Rezaei Aida; Rabbani Masoud

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Journal Paper

Paper Information

Journal: Interdisciplinary Journal of Management Studies Year:2022 | Volume:15 | Issue:1 Page(s): 85-110

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Information Journal Paper

Title

A Lot-Sizing Model for Non-Instantaneous Deteriorating Products Under Advance Payment and Non-Linear Partial Backlogging

Author(s)

Tavassoli Sara | Manavizadeh Neda | Rezaei Aida | Rabbani Masoud | Issue Writer Certificate

Keywords

Economic order quantity

Non-linear partial backordering

Non-instantaneous deterioration

Advance payments

Deteriorating items

Abstract

In real life conditions, the buyers sometimes pay all or a percentage of the product price before receiving it, and the wholesaler sometimes allows them to prepay it at equal intervals. The present study develops a new mathematical model for products with non-instantaneous deteriorating rates by considering consecutive Advance payments. In the proposed inventory model, the shortage is consisting of lost sales along with backorders simultaneously. In addition, the model considers the backlogging as totally dependent on the waiting time for the further cycle. In addition, the appropriate conditions to achieve the optimal solutions have been developed, and numerical instances have been provided to verify and evaluate the results and solution method. The useful methods to effectively reduce the annual total cost are provided according to the results of the sensitivity analysis.

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