International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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New Approach Formulation in Two-Level Trade-Credit Inventory Model with Reminder Cost

Author(s) Mr. Gautam Kumar
Country India
Abstract This study introduces a new approach formulation in trade credit model for deteriorating items that accounts for default risk and reminder costs, inspired by practical strategies observed in rural India. By incorporating these elements, the model aims to minimize customer defaults and improve retailer profitability. Optimization is performed using the generalized reduced gradient (GRG) method, and the results reveal that implementing reminder costs can lead to a substantial increase in overall profit.
Keywords Two-level trade-credit, Default risk, Reminder cost, New approach
Field Mathematics > Economy / Commerce
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-09-05
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.55236
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E-ISSN 2582-2160
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