Journal ArticleDOI
Retailer's optimal cycle times in the EOQ model with imperfect quality and a permissible credit period
Kun-Jen Chung,Yung-Fu Huang +1 more
TLDR
In this article, the authors modifies two assumptions of the classical EOQ model to reflect real-life situations, such as the payment of an order is made on the receipt of items by the inventory system.Abstract:
This paper modifies two assumptions of the classical EOQ model to reflect the real-life situations First, the classical EOQ model assumes that all units produced or purchased are of good quality Second, the payment of an order is made on the receipt of items by the inventory system So, we incorporate both Goyal [Journal of the Operational Research Society 36: 335–338 (1985)] and Salameh and Jaber [International Journal of Production Economics 64: 59–64 (2000)] to develop a production/inventory model of the retailer to allow items with imperfect quality under permissible delay in payments In addition, the objective function is modeled as an expected total annual profit maximization problem Then, two theorems are developed to efficiently determine the optimal cycle time and the optimal order quantity for the retailer Numerical examples are given to illustrate these theorems Finally, we deduce some previously published results of other researchers as special casesread more
Citations
More filters
Proceedings ArticleDOI
Optimal replenishment policy for items with imperfect quality and shortages under permissible delay in payments
TL;DR: In this article, the authors extended the work of Chung and Huang by considering that shortages are allowed and occur as lost sales where the loss of stock out and the salvage of the residue are counted into the cost.
Book ChapterDOI
The Shortage Study for the EOQ Model with Imperfect Items
TL;DR: The sufficient condition to ensure the occurrence of non-shortages is obtained and a mathematical discussion is provided to construct an optimal inventory model for dealing with the possibilities of the shortage problem.
Journal ArticleDOI
A Supply Chain Model with Learning Effect and Credit Financing Policy for Imperfect Quality Items under Fuzzy Environment
TL;DR: In this paper , the authors developed an inventory model with the effect of learning and trade credit strategy under a fuzzy environment for the buyer, where the buyer's total profit has been optimized concerning the order quantity in the fuzzy environment where order quantity has been assumed as a decision variable.
Proceedings ArticleDOI
Optimal Replenishment Cycle in an EOQ Model with Defective Items
TL;DR: In this paper, the optimal replenishment and the order quantity are determined by maximizing the expected profit as the objective, and the validity of the model is verified through the simulation experiments.
References
More filters
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
Economic production quantity model for items with imperfect quality
TL;DR: In this article, the authors extended the traditional economic production quantity model by accounting for imperfect quality items when using the EPQ/EOQ formulae, and considered the issue that poor-quality items are sold as a single batch by the end of the 100% screening process.
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 ordering policy for deteriorating items with allowable shortage and permissible delay in payment
TL;DR: In this article, a model to determine an optimal ordering policy for deteriorating items under a permissible delay of payment and allowable shortage was developed, and different facets of the permissible delays in payment were discussed, and this generalized model exhibits a set of solutions that reduces to an existing model.
Journal ArticleDOI
On the economic order quantity under conditions of permissible delay in payments
TL;DR: In this note, Goyal's model is amended by considering the difference between unit price and unit cost and an easy analytical closed-form solution is established, which reveals the following two managerial phenomena.
Related Papers (5)
Economic production quantity model for items with imperfect quality
Economic order quantity for items with imperfect quality: Revisited
Bacel Maddah,Mohamad Y. Jaber +1 more