Profitably managing inventories is always a big challenge for retailers in the current context of transparent and competitive business. A general retailer always needs to handle both deteriorating and non-deteriorating products simultaneously to run a business. Deterioration of products sometimes impacts a retailer’s profits badly—a situation which can be alleviated by implementing proper preservation technology. In addition, to improve profits and minimize costs, a retailer always seeks some credit facilities (e.g., advance payment, trade credit facilities, etc.) from the supplier to continue the business smoothly with minimum investment. Advance payment is renowned for preventing the possibility of business orders being canceled and helping the retailer to minimize the risk of investing significant amounts at a single time. The foremost objective of this research is to analyze the facilities of advance payment and preservation technology investment and concurrent attempts to deal with shortages. This study shows that, given the presence of preservation technology, the result of case II is 68.06% higher than that of case I, whereas when preservation technology is absent, the result of case II is 71.93% higher than that of case I. The managerial insights of this analysis reveal that preservation technology attempts to prolong product life by preventing deterioration, which contributes to the retailer’s profitable business. On the other hand, in the case of an advance payment scheme, although the costs are relatively high, the study emphasizes the importance of the advance payment facility as it limits the risk of order cancellation and makes business more flexible for both supplier and retailer. The proposed model is solved by the classical optimization technique. Some theoretical derivations with numerical analysis support the model and provide some managerial insights for practitioners.

Inventory management is becoming very challenging for the retailer over the years due to the uncertainty in the demand and supply of products in financial risk and management systems. In a competitive market, running a business smoothly in a highly suitable place is day by day becoming tough due to the very high fare for those locations. Thus, limited storage is available in those elite places with high fares, and a retailer takes a financial risk by stocking huge amounts of products in those limited storage stores. Thus, the appropriate financial analysis is required to find out optimal strategies (financial decisions) to sustain a business organization of electronic products in a global competitive business environment. As a result, when bulk purchases of electronic products, for example, T.V., Fridges, Oven, etc., have been made by the retailer, he faces two problems. The first one is related to the limited storage; as a result, he has to pay a considerable amount to hold the products for a long time. The second one is shortages of liquid money as he invested massive amounts. To avoid these problems, he offers some price discounts on the market’s original selling price to sell the products quickly for a limited time prior to recovering his capital investment. For that reason, a price, time, and stock dependent realistic demand function have been considered in this proposed paper with two modes of discount policy. The proposed model has been solved by a classical optimization technique from calculus and provides some insights for the retailer. Some numerical examples and graphs are provided to illustrate the model.