Optimal Inventory Model for Deteriorating Items with Permissible Delay in Consideration to Default Risk | Chapter 6 | Research Updates in Mathematics and Computer Science Vol. 9

 

The study introduces an innovative approach to manage inventory for deteriorating items by taking into account the permissible delays and default risk. This perspective offers fresh insights into a complex problem faced by many businesses. A credit period is often extended by suppliers to their clients in order to foster long-term relationships and ensure their survival in the business environment. This draws in new clients, increasing market demand. Conversely, the provider is exposed to default risk when a credit period is present. In this paper, an inventory model is developed that deals with credit period dependent quadratic demand and default risk associated with sales revenue. The Deterioration rate under the natural environment is also incorporated with the inventory model. This article discusses the seller's best choice for determining the customer's allowable credit period duration and the purchase amount. Concerns about environmental degradation are also taken into account while making purchases in order to maximize profits. A solution procedure is given for finding the optimal solution of total profit. Numerical example is given to show the effectiveness of the model. Finally, sensitivity analysis is carried out to explore the managerial implications. This study will help significantly the seller in setting optimal credit periods. In future, this research can be extended to study inventory models with stochastic demand. This paper can be extended if shortages are allowed. Different preservation technologies can also be incorporated to reduce deterioration and enhance environmental protection.

 

 

Author(s) Details

 

Anima Bag

Department of Statistics, Rama Devi Women’s University, Bhubaneswar, Pin-751024, India.

P.K. Tripathy

P.G. Department of Statistics, Utkal University, Bhubaneswar, Pin-751004, India.

 

Please see the link:- https://doi.org/10.9734/bpi/rumcs/v9/12316F

Optimal Inventory Model for Deteriorating Items with Permissible Delay in Consideration to Default Risk | Chapter 6 | Research Updates in Mathematics and Computer Science Vol. 9

Inventory, environment, trade credit, default risk, deterioration.The study introduces an innovative approach to manage inventory for deteriorating items by taking into account the permissible delays and default risk. This perspective offers fresh insights into a complex problem faced by many businesses. A credit period is often extended by suppliers to their clients in order to foster long-term relationships and ensure their survival in the business environment. This draws in new clients, increasing market demand. Conversely, the provider is exposed to default risk when a credit period is present. In this paper, an inventory model is developed that deals with credit period dependent quadratic demand and default risk associated with sales revenue. The Deterioration rate under the natural environment is also incorporated with the inventory model. This article discusses the seller's best choice for determining the customer's allowable credit period duration and the purchase amount. Concerns about environmental degradation are also taken into account while making purchases in order to maximize profits. A solution procedure is given for finding the optimal solution of total profit. Numerical example is given to show the effectiveness of the model. Finally, sensitivity analysis is carried out to explore the managerial implications. This study will help significantly the seller in setting optimal credit periods. In future, this research can be extended to study inventory models with stochastic demand. This paper can be extended if shortages are allowed. Different preservation technologies can also be incorporated to reduce deterioration and enhance environmental protection.

 

Author (s) Details

 

Anima Bag
Department of Statistics, Rama Devi Women’s University, Bhubaneswar, Pin-751024, India.

 

P.K. Tripathy
P.G. Department of Statistics, Utkal University, Bhubaneswar, Pin-751004, India.

 

Please see the book here:- https://doi.org/10.9734/bpi/rumcs/v9/12316F

Determinants of Non-performing Loans in Commercial Banks in Kenya | Chapter 4 | An Overview on Business, Management and Economics Research Vol. 5

 This division focuses on assessment of cause of non-performing loans (NPLs) in commercial banks in Kenya. A loan is top-secret as nonperforming loan when the borrower forsakes to make due payments of principal or interest for a period of 90 to 180 days. In Kenya, the flow of NPLs increased during the whole of the 1990s and prior age, causing many banks to fail and so forth to be established under statutory project. The survivor banks and those founded afterward discovered that incompetent loan management was a big cause of the severe blow. While the borrowers are to blame, the administration of the collapsed organizations must share the blame for adopting poor loaning policies, as several needed smart new techniques of directing NPLs. However, improved credit risk administration has reversed the trend of NPLs. Nonetheless, the percentages of gross NPLs to gross loans wait high, conceivably leading to the collapse of more banks. The study's aims search out determine whether risk appraisal methods, the level of borrowers' lack of knowledge of items being provided, risk management methods, business-related conditions, and mechanics obsolescence all influence NPLs. To achieve these goals, basic data was assembled by distributing questionnaires to credit separation staff at chosen banks. The news was examined and presented in tables using the mathematical method of spearman's correlation cooperative. The findings disclosed that, of the five components judged, risk assessment methods had the maximal correlation cooperative, making them the basic contributor to NPLs, followed by borrowers' lack of knowledge of the products being presented, while risk management plans had the smallest contribution. The judgments will give bank administration increased information on credit risk exposure and NPL control, developing in increased appropriateness.

Author(s) Details:

Irene Njeri Esther,
Department of Business and Management Science, Taita Taveta University, P.O. Box 635-80300, VOI, Kenya.

Please see the link here: https://stm.bookpi.org/AOBMER-V5/article/view/12425