Retailer’s Optimal Order Level for Deteriorating Items under the Effect of Preservation Technology and Inflation with Partial Trade Credit

Retailers face many challenges in the dynamic retail environment while managing deteriorating items.Preservation technology plays a vital role in extending the shelf life of perishable products, mitigating deterioration rates, and reducing inventory costs.This study incorporates the effect of preservation technology on the deterioration rate and its impact on retailer decisions.Inflation affects the purchasing power of money over time, impacting inventory costs and revenue.For the optimal order level, a mathematical model is developed that considers the effect of preservation technology, inflation, and trade credit.A numerical illustration was conducted to validate the model.The results provide insights into the trade-offs between these factors and their implications for retailers' inventory control decisions.The finding offers practical implications for retailers seeking to enhance their inventory decision strategies in a dynamic and competitive retail environment.Sensitivity analysis is conducted to explore the impact of various parameters.The analysis of this paper shows that a higher trade credit period causes the highest total profit.