Impact of Credit Financing on the Ordering Policy for Imperfect Quality Items With Learning and Shortages

Introduction

The quality of items damages day by day due to deterioration. There are many researchers who provided new strategy to accomplish the quality of items with the support of modern technologies like preservation technology, inspection of lots by human or sensor machinery etc. In this paper, when buyer receives the whole lot, he then inspects it and uses their strategy. In this way, we have studied literature review related to this model.

Firstly, Porteus (1986) proposed inventory model for defective items. Deterioration and degeneration of an item occurs in situations like physical decay, their evaporation and many such factors. Whitin (1957), Ghare and Schrader (1963) and Goyal (1985) worked on deteriorating items with different strategies. Some renowned researchers discussed about the permissible delay in payment policy and established inventory models with various demand patterns under credit financing policy. We are providing some of them like Aggarwal and Jaggi (1995), Tiwari et al. (2016) and Tiwari et al. (2018) who developed an economic order quantity (EOQ) inventory model by new approach under trade credit policy in one level or two levels for decaying products. An inventory model with inflationary situation under credit period where lot has some defective items was developed by Jaggi et al. (2011). Agarwal et al. (2016) offered an economic order quantity model for profit using data mining concept. Sarkar (2016) considered discount policy in ordered quantity model with shortages. A green production model with partially backlogging situation under trade credit policy was proposed by Tiwari et al. (2018).

Some authors who worked on deteriorating imperfect quality items with different strategy under financing strategy. Jaggi et al. (2013) developed a model for declining things under credit scheme where lots have some defective items. A lot of inventory model with different approaches are developed with learning concept. An inventory model with carbon emission under supply chain management was established by Tiwari et al. (2018). Yadav et al. (2018) enhanced a traditional order quantity model by game theory approach. Wright (1936) derived an inventory model under the learning concept. After that many inventory model proposed in inventory theory. Li and Cheng (1996) discussed an inventory model with break down theory of learning under different approaches. Jaber and Bonney (1998) who presented EOQ model with new approach under learning theory. Sangal et al. (2017) developed an inventory model for declining item with learning effect. Patro et al. (2018) derived an EOQ model for decaying items, where holding and ordering cost are decreasing functions of shipment and defective percentage owes the learning curve. Jayaswal et al. (2019) discussed an EOQ problem with credit scheme under the effect of learning with the assumption that the lot has some imperfect products. In this direction, Jayaswal et al. (2019) discovered an order quantity model with financing scheme and shortages under fuzzy environment and learning effects where defective items present in the lots. The contribution Table 1 has been provided below.