An Economic Order Quantity model for deteriorating items with trade credit financing for Quadratic demand

Document Type : Research Paper

Authors

1 Department of Applied Sciences and Humanities, Invertis University, Bareilly, India

2 Department of Applied Sciences and Humanities, KNIT, Sultanpur (UP) India 228118

Abstract

Objective: Researchers established an EOQ model for degrading goods with trade credit policy under invariant, stock-linked, exponential, and linearly time-dependent demand. The analysis imposed a condition for quadratic time-dependent demand. The mathematical model is developed to obtain total profit by considering two different cases. One common observation is that the demands for the goods that are on display in the supermarket fluctuate. In this study demand is measured to be quadratic time-sensitive. The EOQ is generally applied to locate the most favorable order quantity in order to maximize the total supply cost.
Methods: The EOQ model considers that the total order for an article is received into inventory at one specified time which is when the EOQ model assumes that the products are produced.
Results: There are numerous costs acquired in the existent practice such as ordering cost, sales revenue, carrying cost, interest earned, and interest charged, etc.
Conclusion: The implementation of the sensitivity test and an optimal solution helps to confirm how the mathematical model will generate total profit in two different ways. The EOQ method is used to identify the order quantity that maximizes total supply costs in the order’s viewpoints. This should assist with future management of degraded products under a trade credit scheme, as well as advance the accuracy and reliability of making Inventory-related decisions due to demand fluctuations.

Keywords

References

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International Journal of Supply and Operations Management
Volume 13, Issue 1
February 2026
Pages 157-173

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