Document Type : Review Article
Authors
1
Department of Mathematics & Humanities, Sardar Vallabhbhai National Institute of Technology(SVNIT), Surat, Gujarat, 395007, India
2
Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore, West Bengal, 721102, India
3
Assistant Professor of Mathematics, Department of Mathematics & Humanities, Sardar Vallabhbhai National Institute of Technology (SVNIT), Surat, Gujarat, 395007, India
4
Department of Mathematics, Mahishadal Raj College, Mahishadal, Purba Medinipur, West Bengal, 721628, India
Abstract
In this study a supplier-retailer-customer supply chain of a deteriorating item has been proposed where the supplier adopt full credit policy for the retailer to enhance the retailer's order volume. This facility influences the retailer to provide a credit period to his/her customers on a portion of the purchased amount to boost the market demand. These are named as partial credit period and credit amount of the customers. For the credit opportunity adopted by the retailer, he/she always faces a risk to sell the items due to defaulters, which is termed as default credit risk. In this paper, the default credit risk is considered in more realistic manner, which depends on the customers' partial credit period and credit amount. The customers' credit amount, customers' credit period and retail price of the item influences the market demand. The item has an expiration time and the dynamic deterioration rate depends on it. Optimal decision is searched by maximizing the average profit from the system. For the search process, an artificial bee colony algorithm is implemented, tested and used. Illustration of the model is done with some hypothetical examples.
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