Analysis of Inventory System with Quadratic Deterioration and Two Levels of Trade Credits

Abstract

The main purpose of this study is to investigate the effect of quadratic deterioration rate for inventory system with two levels of trade credits. Also the convexity of the retailer's inventory system is developed. Finally, a theorem is developed to determine the retailer's optimal replenishment cycle time efficiently.

Keywords:  EOQ, Inventory, Quadratic deterioration, Two levels of trade credit.