Paper Info
Title
Inventory Of A Deteriorating Green Product With Preservation Technology Cost Using A Hybrid Algorithm
Abstract
Nowadays, in a competitive market circumstance, a distributor/wholesaler permits a settled trade credit to the retailer(s) for more deal, and in turn, retailer offers a fraction of that credit period to the customers for the quick-moving of the business, i.e. to increase the demand. In reality, all the customers are not fully trustworthy. There are some customers who do not pay the dues after enjoying the trade credit. The number of default customers increases with the increase in trade credit period given to them. Thus, these two contradict each other. There is a decent market with increasing demand for greener (contamination free) item(s), especially for deteriorating item(s). Here, in the present investigation, customers' demand increases with both the trade credit given to customers and the greenness of the product. Obviously, the price tag will be higher for green items. Increased price always negates the demand. Hence, greenness and the increased price of the green products are contradictory to each other. Once more, to reduce the deterioration rate, the retailer incurs an expenditure termed as preservation technology cost. Due to preservation, deterioration of the items decreases but cost increases. Here, control of deterioration and preservation act contradictory to each other. The base demand, effects (coefficients) of the trade credit, and greenness are taken as fuzzy. Incorporating the above facts, a model is developed with a fuzzy differential equation and solved by Chalco-Cano alpha-cut method. The profit is calculated by assuming two-level trade credit and default customers. In this investigation, a new concept of clearing the supplier's dues is introduced. Instead of payment of all dues at the end of business cycle period, the retailer clears his dues as and when he has sufficient money for this purpose. Numerical experiments for different cases are performed along with their physical interpretations. Imprecise nature of the profit is shown through its membership function and depicted graphically. Interestingly, it is demonstrated that positive effect of deterioration due to the increase in preservation technology and increase in profit due to greenness are up to certain extent. After that, these have the reverse effects.
Year
DOI
Venue
2021
10.1007/s00500-021-06004-9
SOFT COMPUTING
Keywords
DocType
Volume
Default risk, Deterioration, Fuzzy demand, Green product, Preservation technology cost (PTC), Trade credit
Journal
25
Issue
ISSN
Citations 
17
1432-7643
0
PageRank 
References 
Authors
0.34
0
4
Name
Order
Citations
PageRank
Anindita Kundu1214.42
Partha Guchhait2504.09
Manoranjan Maiti351447.77
Oscar Castillo45289452.83