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International Journal of Statistika and Mathematika, ISSN: 2277- 2790 E-ISSN: 2249-8605
Volume 6, Issue 1, May 2013 pp 22-29
Comparative Study of Inventory Model for Duopolistic Market under Trade Credit
Deepa H Kandpal, Khimya S Tinani
Department of Statistics, Faculty of Science, The M. S. University of Baroda, Vadodara-390002, Gujarat, INDIA.
Academic Editor: Dr. Dase R.K.
This paper did some researches on stochastic inventory model in duopolistic market when permissible delay in payment was applied and the model was compared when the privilege is not offered. From the perspective of supplier’s and businessman mathematical model has been established. Spectral theory is used to derive explicit expression for the transition probabilities of a four state continuous time markov chain representing the status of the systems. These probabilities are used to compute the exact form of the average cost expression. We use concepts from renewal reward processes to develop average cost objective function. Optimal solution is obtained using Newton Rapson method in R programming. Finally sensitivity analysis for varying parameter values has been carried out.