Optimal replenishment policies for EOQ inventory model with limited storage capacity under permissible delay in payments

The main purpose of this paper wants to investigate the effect of trade credit policy with limited storage capacity within the economic order quantity (EOQ) framework. Goyal is frequently cited when the inventory systems under conditions of permissible delay in payments are discussed. But Goyal assumed that the retailer’s storage capacity is unlimited. This assumption is debatable. So, we want to extend Goyal’s model to the case that the retailer’s storage capacity is limited. Then, two theorems present solution procedures to locate the optimal cycle times of the annual total relevant cost function. In essence, the inventory model discussed in this paper generalizes that of Goyal. Finally, numerical examples are given to illustrate all theorems obtained in this paper.

[1]  Horng-Jinh Chang,et al.  An inventory model for deteriorating items with partial backlogging and permissible delay in payments , 2001, Int. J. Syst. Sci..

[2]  Shaojun Wang,et al.  Supply chain models for perishable products under inflation and permissible delay in payment , 2000, Comput. Oper. Res..

[3]  B. Sarker,et al.  Optimal payment time for a retailer under permitted delay of payment by the wholesaler , 2000 .

[4]  James E. Ward,et al.  A Note on “Economic Order Quantity under Conditions of Permissible Delay in Payments” , 1987 .

[5]  Lakdere Benkherouf,et al.  A deterministic order level inventory model for deteriorating items with two storage facilities , 1997 .

[6]  B. Sarker,et al.  An ordering policy for deteriorating items with allowable shortage and permissible delay in payment , 1997 .

[7]  Hark Hwang,et al.  Retailer's pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments , 1997, Comput. Oper. Res..

[8]  Kun-Jen Chung.  Economic order quantity model when delay in payments is permissible , 1998 .

[9]  Peter Chu,et al.  Economic order quantity of deteriorating items under permissible delay in payments , 1998, Comput. Oper. Res..

[10]  Horng-Jinh Chang,et al.  An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments , 2001 .

[11]  S. Goyal.  Economic Order Quantity under Conditions of Permissible Delay in Payments , 1985 .

[12]  Kun-Jen Chung.  A theorem on the determination of economic order quantity under conditions of permissible delay in payments , 1998, Comput. Oper. Res..

[13]  Kun-Jen Chung,et al.  THE OPTIMAL CYCLE TIME FOR EXPONENTIALLY DETERIORATING PRODUCTS UNDER TRADE CREDIT FINANCING , 2001 .

[14]  Jun-Sik Kim,et al.  An optimal credit policy to increase supplier's profits with price dependent demand functions , 1994 .

[15]  Hark Hwang,et al.  Optimal pricing and ordering policies for retailers under order-size-dependent delay in payments , 2003, Comput. Oper. Res..

[16]  Kun-Jen Chung.  The Inventory Replenishment Policy for Deteriorating Items Under Permissible Delay in Payments , 2000 .

[17]  Bhaba R. Sarker,et al.  Optimal payment time under permissible delay in payment for products with deterioration , 2000 .

[18]  Derek W. Bunn,et al.  An integrative modelling approach for understanding competitive electricity markets , 1998, J. Oper. Res. Soc..

[19]  Nita H. Shah,et al.  A lot-size model for exponentially decaying inventory when delay in payments is permissible , 1993 .

[20]  Hung-Chang Liao,et al.  An inventory model with deteriorating items under inflation when a delay in payment is permissible , 2000 .

[21]  Nita H. Shah,et al.  Retailer's pricing, credit and inventory policies for deteriorating items in response to temporary price/credit incentives , 2003 .

[22]  S. Aggarwal,et al.  Ordering Policies of Deteriorating Items under Permissible Delay in Payments , 1995 .

[23]  O. Coskunoglu,et al.  A New Logit Model for Decision Making and its Application , 1985 .

[24]  A. Shawky,et al.  Constrained production lot-size model with trade-credit policy: 'A comparison geometric programming approach via Lagrange' , 2001 .

[25]  Manoranjan Maiti,et al.  A two warehouse inventory model for deteriorating items with a linear trend in demand and shortages , 1998, J. Oper. Res. Soc..

[26]  A. Goswami,et al.  An Economic Order Quantity Model for Items with Two Levels of Storage for a Linear Trend in Demand , 1992 .