According to the law of demand, price and demand are inversely related. With the increase in price, the demand for an item decreases and vice versa. It is observed that the demand for an item is also influenced by the instantaneous stock level. In this paper, an attempt is made to develop a price and lot-size policy for perishable goods in the case of multi-item, whose demand has been considered to be dependent upon price as well as the stock level, and the goods are of a deteriorating nature. The deteriorating item loses its economic value with time. A mathematical model has been formulated to minimize total supply chain cost under trade credit policy. Illustrative numerical problems and further sensitivity analysis have been carried out. The results obtained show that model behaviour is justified for real-life experiences. It has been observed that the total supply chain cost for all three items increases gradually with the increase in the rate of deterioration. The cycle time, credit period, and lot size decrease with the increase in the deterioration rate. The production inventory model with trade credit financing can be useful for the supply chain managers to reduce supply chain cost and increase supply chain surplus.

@article{amitambargupta-2026-1732,
  title={Production Inventory Model for Multi-Item Perishable Goods with Price and Stock-Dependent Demand Under Trade Credit Policy},
  author={Amit Ambar  Gupta},
  journal={Operations and Supply Chain Management: An International Journal},
  year={2026},
  volume={19},
  number={2},
  pages={329--338},
  doi={10.31387/oscm0650523}
}

Amit Ambar  Gupta (2026). Production Inventory Model for Multi-Item Perishable Goods with Price and Stock-Dependent Demand Under Trade Credit Policy. Operations and Supply Chain Management: An International Journal, 19(2), 329-338. https://doi.org/10.31387/oscm0650523