What question did this study set out to answer?

The aim is to minimize inventory costs by optimizing restocking cycles, order sizes, and depletion points for deteriorating items.

April 3, 2026

Investigating the impact of trade credit policies considering deterioration, quadratic time-stock dependent demand and shortages with partial-logging

Key Points

The aim is to minimize inventory costs by optimizing restocking cycles, order sizes, and depletion points for deteriorating items.
Developed a model for deteriorating items in owned and rented warehouses
Analyzed demand changes over time and allowed for payment delays
Examined scenarios for partial inventory fulfillment during shortages
Utilized algorithms to calculate optimal restocking cycles and order sizes
Identified optimal restocking cycles and order sizes that reduce inventory costs
Illustrated the connection between payment delays and inventory management
Provided valuable insights for deciding between owned and rented warehouses

Abstract

This study examines a warehouse model for deteriorating items with both owned and rented warehouses. It looks at how demand changes over time, stock levels, and allows for payment delays, enabling partial inventory fulfilment when there are shortages in the owned warehouse (OW). The model connects order delays to restocking times and analyses different scenarios based on payment delay options. The goal is to minimise inventory costs by determining the best restocking cycles, order sizes, and depletion points at the OW. The study includes algorithms to calculate these optimal values, helping decide whether renting a warehouse and using payment delays are worthwhile. With numerical illustration, it shows how this approach can optimise supply chain management by offering valuable managerial insights.

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