Paper Title
Stochastic Inventory Model Under Permissible Delay in Payment and Exponentially Distributed Lead Time

In this paper, a stochastic inventory control model is investigated under the policy of permissible delay in payments. The supplier offers the retailer a grace period to pay part of the order cost before placing the next order. The lead time is assumed to follow an exponential distribution and demand rate is deterministic. Also, it is assumed that shortages are backlogged. We develop the model for the problem where the decision variables are the lot size and the reorder point, and the objective is to minimize the net expected total cost. An algorithm that solves the model is established and is used to obtain results for the effect of model’s key parameters on the optimal solution. Keywords - Inventory, Permissible Delay in Payments, Stochastic, Lead Time