Inventory model for perishable items for interval-valued price dependent demand and advance payment policy with parametric approach via particle swarm optimization

ABSTRACTAdvance payment for replenishment and the lifetime of an item are the most vital issues in the business sector. With the consideration of these issues, the formulation of a non-deterministic inventory model in the interval environment is of great importance. In this work, two different non-deterministic inventory models are formulated along with a variable holding cost, variable demand, and advertisement frequency under an advance payment policy in the interval environment. In the first inventory model, a no-shortage situation is discussed, whereas in the second model, a stock-out scenario is adopted by partially backordering during modelling. The modelling framework for both problems is accomplished based on interval differential equations. The interval optimization problems related to both models are obtained utilizing parametric…