Imperfect Inventory Model for Trended Demand under Radio Frequency Identification and Trade Credit

Abstract

In this paper, models on concepts of radio frequency identification adoption (RFID), imperfect products reworking system, and trade credit for deteriorating inventory with/without utilizing the preservation investment technology are done. Estimation of optimal values of RIFD levels of investment for ordering, operating, just in time efficiencies along with production cycle time and preservation investment. The demand is time-dependent. The classification of the model is based on demand rate and product reworking of imperfect quality items. Further, four subcases based on the credit period and time of the production cycle. The main objective is to calculate the total manufacturing cost in each subcase.