A model for fresh produce with inflation induced dynamic demand under dynamic trade credit policy in imprecise environments

Abstract

The significance of product freshness is heightened by the health-conscious market and the current circumstances. The quality of the product declines with time. In this case, the retailer implements a strategy of gradually reducing the selling price over time to mitigate the effects of product degradation. As a consequence, demand keeps growing over time. The demand for a product depends upon both its freshness and the price at which it is sold. In this research, a suggested retailer-customer supply chain for a fresh produce item is examined. The retailer implements a partial credit policy for the customer in order to increase the retailer’s order volume. The credit amount and credit period are found to be time-dependent in an increasing way. The optimal choice is determined by maximizing the total profit derived from the system. An optimization technique called particle swarm is developed, evaluated, and employed for the search process. According to the findings of this study, even if a merchant extends the credit term while a fresh product’s quality declines, overall profit will not improve since buyers would not jeopardize their health. A few examples are used to illustrate the concept.