1Department of Mathematics, Holy Cross College (Autonomous), Tiruchirappalli-620002, Tamilnadu, India
2Department of Mathematics, Government Arts College, Tirchirappalli-620022, Tamilnadu, India
Online published on 18 March, 2017.
The insights of managing inventory are essential nowadays. The characteristic of inventoried goods vary, which implies that the classical economic order quantity is insufficient. In this study an extension is made to develop an inventory for an evaporating item (like petrol). Effective financing credit policy results in cost reduction and less capital investment two levels of trade credit policy are implemented in this paper. A numerical example is provided to illustrate the model.
Evaporating item, inventory model, trade credit policy, interest
