An Inventory Model with Noninstantaneous Receipt and Permissible Delay in Payments

[[abstract]]This article explores an inventory system with nonistantaneous receipt under conditions of permissible delay in payments. The nonistantaneous receipt model under trade credit in newly introduced. The purpose of this article is to determine the optimal replenishment policies under conditions of nonistantaneous receipt and permissible delay in payments. We present an easy analytical closed-form solution to find the optimal order quantity, order cycle and order receipt period so that the total relevant cost per unit time is minimized. Numerical examples are presented to illustrate the proposed model