Abstract
In this research, we focus on customer waiting time for delivery of discounted products. Our research presents three inventory models for time-discount. The first model compares cost of a given period from orders, the second model compares profit and the third model compares dynamic profits. Through use of these models, we consider boundary inventory levels based time-discount and calculate lead time profit and penalty costs. Our research calculates the optimal period for time-discount and shows that time-discount not only increases profit but also considerably decreases penalty cost.
