A Comprehensive Study of EOQ (Economic Order Quantity) System for Spoilage Commodities with Stock–Sensitive Demand and Trade Credits

Prior EOQ models under trade credits generally assumed that the demand of the commodities was either stable or purely dependent on the selling price. This paper develops an economic order control model of deteriorating commodities with inventory associated demand under different conditions. It is assumed that the permissible delay period is permitted till specific threshold. The comparative study of order quantity with threshold quantity is also discussed. Optimal solutions are obtained with the help of differential calculus and optimality condition. Numerical examples and sensitive analyses are provided to validate the optimal solution. It is also shown that the total cost function is U-shaped.