Effects of Deterioration Rate and Transportation Costs on Supply Chain Strategies Considering Partial Backlog and Linear Demand with Permissible Delay in payment

Abstract

In this study, we consider an inventory model for the effect of the deterioration rate and transportation cost on the supply chain strategies in which shortages are allowed with partial backlog and salvage value is incorporated to the deterioration items. The holding cost is a linear function of time. In this model, the demand rate and the deterioration rate are both linear time-dependent. The objective of this paper is to develop and analyze an inventory model that captures these complexities and provides insights into optimal decision-making strategies under the given conditions.  The model is solved analytically by minimizing the total inventory cost. Numerical analysis is provided to illustrate the solution and application of the model.