A Probabilistic Inventory Model With Trade Credits and Stochastic Demand

Abstract

This paper presents a probabilistic inventory model that incorporates trade credits and stochastic demand. The model is designed to optimize total inventory costs by considering time-dependent holding costs, the probabilistic nature of demand, and the financial implications of trade credits. The contributions of this paper fill significant gaps in existing literature, offering a comprehensive approach to inventory management under uncertainty. Detailed derivations, numerical examples, and real-world case studies are provided to illustrate the application of the model.