A review of trade credit literature: Opportunities for research in operations

An EOQ model with partial backordering and advance payments for an evaporating item

Integrating deterioration and lifetime constraints in production and supply chain planning: A survey

An inventory control problem for deteriorating items with back-ordering and financial considerations

The paper deals with an inventory control problem for perishable items where two level credit periods depend on the order quantity over the finite time horizon. We assume that the supplier offers delay in payment on outstanding cost of purchasing goods to the retailer when purchasing amount is more than a fixed large amount. Moreover, the retailer offers a delay period to the customers for payment of their purchasing goods. In the inventory system, shortage is permitted and it is completely backordered.The net present value of the retailer's cost function, including costs of ordering, inventory holding, shortage, purchasing and other opportunities, is optimized. Then, an algorithm is proposed to determine the optimal values of order quantity, shortage quantity, number of cycles and the total cost of the system. Finally, a numerical example with sensitivity analysis of the key parameters is illustrated to show the applicability of the proposed model.

https://www.aimsciences.org/article/exportPdf?id=aa635a2a-0f1a-4d34-91c4-a284a5487e09

An inventory control problem for deteriorating items with back-ordering and financial considerations under two levels of trade credit linked to order quantity

A retailer's inventory control system for the optimal delay in payment time for initial stock-dependent consumption rate when a wholesaler permits delay in payment is developed. Shortages are not allowed in the inventory system. The effect of inflation rate, deterioration rate, initial stock-dependent consumption rate and a wholesaler's permissible delay in payment is discussed. A mathematical model is derived when a wholesaler permits that the credit period is less than or equal to the retailer's optimal payment time, and that the retailer's optimal payment time is less than or equal to the cycle time for settling the account. Besides, an expression for a retailer's inventory system's total cost derived for this case and five special cases will be discussed. Moreover, a computational procedure is proposed to obtain the optimal cycle time, retailer's payment time and order size. The results could help retailer's managers to determine the optimal total cost and strive for the wholesaler's permission to del...

Y.-K. Chen

Papers

Optimal payment time for retailer's inventory system