Mathematics and Computational Sciences

Optimization of Retail Inventory Systems Incorporating 3PL Services, Trade Credit, and Inflation-Driven Financial Dynamics

Articles in Press

Document Type : Original Article

Authors

Riya Rana 1
Sanjey Kumar 2
Sulekha Rani 3
Neeraj Kumar 4

1 Department of Mathematics, Research Scholar, SRM University Delhi-NCR, Sonepat, Haryana

2 Department of Mathematics, Assistant Professor, SRM University, Sonepat Haryana, 131301

3 Department of Mathematics, Associate Professor, Central University of Jammu, Jammu

4 Department of Mathematics, Professor, Harcourt Butler Technical University, Kanpur

https://doi.org/10.30511/mcs.2026.2085770.1753
Abstract
In today's highly competitive business environment, retailers continuously seek effective strategies to improve profitability while maintaining product quality and customer satisfaction. It is more difficult to manage deteriorating products when trade-credit policies, investment in preserving technology and logistics coordination are taken into account simultaneously. To address these issues, this study proposes an inventory model for deteriorating items under inflationary conditions for multi-retailers integrated with 3PL. The framework is based on price sensitivity and quality dependence in demand, preservation technology investment, the allowed time for payments, and coordinated 3PL services to improve inventory performance and supply chain efficiency. The selling price is assumed to be a multiplicative factor in the demand function, and product quality is assumed to be a multiplicative factor in the demand function, with preservation technology investment serving to manage deterioration. Shortages are allowed and completely backlogged. Two trade-credit situations are analysed, depending on the relationship between the time period allowed for trade credit and the time period for positive inventory. The goal is to find the best-selling price and investment in preservation technology for the retailer to maximize their total profit. The proposed model is a comprehensive decision-making framework that integrates pricing, inventory management, preservation technology, and logistics outsourcing decisions. Moreover, a sensitivity analysis is conducted to examine the influence of the major system parameters on optimal solutions and overall system performance.

Keywords

Third party Logistics
Retail management
Inflation
Home delivery
Inventory model
Subjects
Mathematics and Computational Sciences

Articles in Press, Accepted Manuscript
Available Online from 16 October 2026

  • Receive Date 17 February 2026
  • Revise Date 24 September 2026
  • Accept Date 29 September 2026

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