Profit function Optimization for Growing Items Industry

The economy of a country depends on many industries; growing item industries are one of them. Growing items also exhibit mortality in the growth period, which creates a complex environment for the procurement decision. A practical inventory model is required to overcome this situation, which provides the optimum solution. This work describes an economics ordering quantity model for growing items with constant demand and mortality. We also take into consideration that one of the real-life management practices for businesses is the allowance of a delay in payment. There is a solution procedure with a numerical example. We have discussed analytical results to verify the concavity of the profit function. Sensitivity analysis provides us with some very useful information.