In this study, we incorporate trade credit policy into a joint marketing and pricing problem in which demand rate depends on the length of the credit period provided by the retailer for her customers, marketing expenditure, and selling price. | An inventory model with credit price and marketing dependent demand under permitted delayed payments and shortages A signomial geometric programming approach Uncertain Supply Chain Management 7 2019 33 48 Contents lists available at GrowingScience Uncertain Supply Chain Management homepage uscm An inventory model with credit price and marketing dependent demand under permitted delayed payments and shortages A signomial geometric programming approach Masoud Rabbania and Leyla Aliabadia a School of Industrial Engineering College of Engineering University of Tehran Tehran Iran CHRONICLE ABSTRACT Article history In this study we incorporate trade credit policy into a joint marketing and pricing problem in Received February 2 2018 which demand rate depends on the length of the credit period provided by the retailer for her Accepted May 23 2018 customers marketing expenditure and selling price. The trade credit policy adopted here is a Available online delayed payment policy in partial form in which the customers must pay a percent of the total May 29 2018 Keywords purchasing cost at the time of placing an order and can pay the remaining amount later. Credit-dependent demand Shortages are allowed and partially backordered. The main objective of this study is to Partial delayed payment determine the optimal credit period marketing expenditure selling price and variables of Partial backordering inventory control simultaneously in order to maximize retailer s total profit. For solving the Signomial geometric proposed problem first an approximation method is applied to simplify the profit function and programming transform the problem into a constrained Signomial Geometric Programming SGP problem then a global optimization approach is used for solving the model. Finally a numerical example and sensitivity analysis of the important parameters are conducted to show the effectiveness of proposed approach. 2019 by the authors licensee Growing Science .
