Journal ArticleDOI
Optimal payment time for retailer's inventory system
H.-C. Liao,Y.-K. Chen +1 more
TLDR
A retailer can attempt to gain two very big advantages: (1) that the retailer will have more money to run in that period because of the extension of the optimal payment time and (2) that extra interest will be earned in thatperiod.Abstract:
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...read more
Citations
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Journal ArticleDOI
A review of trade credit literature: Opportunities for research in operations
TL;DR: An integrative review of the existing literature on trade credit motives, order quantity decisions, credit term decisions, and settlement period decisions is provided and a detailed agenda for future research in these areas is derived.
Journal ArticleDOI
An EOQ model with partial backordering and advance payments for an evaporating item
TL;DR: In this article, an economic order quantity model for an evaporating item with partial backordering and partial consecutive prepayments is developed with a real case study of a gasoline station.
Journal ArticleDOI
Integrating deterioration and lifetime constraints in production and supply chain planning: A survey
Julia Pahl,Stefan Voß +1 more
TL;DR: The state-of-the-art regarding depreciation effects and the modeling of lifetime constraints as well as a classification of models following business planning functions of the value chain are surveyed.
Journal ArticleDOI
An inventory control problem for deteriorating items with back-ordering and financial considerations
TL;DR: An economic order quantity model to manage a perishable item over the finite horizon planning under which back-ordering and delayed payment are assumed and the sensitivity analysis is reported to find some managerial insights.
Journal ArticleDOI
An inventory control problem for deteriorating items with back-ordering and financial considerations under two levels of trade credit linked to order quantity
TL;DR: In this paper, an inventory control problem for perishable items where two level credit periods depend on the order quantity over a finite time horizon is dealt with, and an algorithm is proposed to determine the optimal values of order quantity, shortage quantity, number of cycles and the total cost of the system.
References
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Journal ArticleDOI
Economic Order Quantity under Conditions of Permissible Delay in Payments
TL;DR: In this article, a mathematical model for obtaining the economic order quantity for an item for which the supplier permits a fixed delay in settling the amount owed to him is presented, and an example has been solved to illustrate the method.
Journal ArticleDOI
Ordering Policies of Deteriorating Items under Permissible Delay in Payments
S. P. Aggarwal,Chandra K. Jaggi +1 more
TL;DR: In this paper, an attempt has been made to obtain the optimum order quantity of deteriorating items under a permissible delay in payments, where it is found that the supplier allows a certain fixed period to settle the account, but beyond this period interest is charged under the terms and conditions agreed upon and moreover, interest can be earned on the revenue received during the credit period.
Journal ArticleDOI
An EOQ Model for Items with Weibull Distribution Deterioration
TL;DR: In this paper, an inventory model is considered for deteriorating items with a variable rate of deterioration, where deterioration means decay, damage or spoilage such that the item cannot be used for its original purpose.
Journal ArticleDOI
Economic Order Quantities with Inflation
TL;DR: In this article, it is shown that with inflation the choice of the inventory carrying charge used in the EOQ formula can be changed with respect to all relevant costs and prices.
Journal ArticleDOI
A Deterministic Inventory System with an Inventory-Level-Dependent Demand Rate
Richard Baker,Timothy L. Urban +1 more
TL;DR: In this article, a continuous, deterministic case of an inventory system in which the demand rate of an item is of a polynomial functional form, dependent on the inventory level is analyzed.