The optimal ordering policy of the EOQ model under trade credit depending on the ordering quantity from the DCF approach

2009 ◽  
Vol 196 (2) ◽  
pp. 563-568 ◽  
Author(s):  
Kun-Jen Chung ◽  
Jui-Jung Liao
Keyword(s):  
Trade Credit ◽  
Eoq Model ◽  
Ordering Policy ◽  
Optimal Ordering Policy ◽  
Optimal Ordering ◽  
Ordering Quantity

Retailer's Optimal Ordering Policy under Conditions of Allowable Shortage and Two-Level Trade Credit Derived without Derivatives

2013 ◽  
Vol 694-697 ◽  
pp. 3428-3433
Author(s):  
Fei Hu
Keyword(s):  
Differential Calculus ◽  
Trade Credit ◽  
Algebraic Method ◽  
Optimal Order ◽  
Order Quantity ◽  
Numerical Examples ◽  
Ordering Policy ◽  
Optimal Order Quantity ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

An inventory model was developed to determine an ordering policy for the retailer under conditions of allowable shortage and two levels of delay permitted. We present a simple algebraic method to replace the use of differential calculus for determining the retailer's optimal ordering policy. A theorem is presented to obtain the optimal order quantity, and numerical examples are given to illustrate the results obtained in this paper.

scholarly journals Integrated Inventory Model for Deteriorating Items with Price-Dependent Demand under Quantity-Dependent Trade Credit

2013 ◽  
Vol 2013 ◽  
pp. 1-8 ◽  
Author(s):  
Karuppuchamy Annadurai
Keyword(s):  
Trade Credit ◽  
Optimal Solution ◽  
Inventory Model ◽  
Selling Price ◽  
Business Decision ◽  
Integrated Inventory Model ◽  
Ordering Policy ◽  
Integrated Inventory ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

This paper explores an integrated inventory model when the deterioration rate follows exponential distribution under trade credit. Here, it is assumed that demand rate is a function of selling price and the permissible delay in payment depends on the order quantity. In the model shortages are completely backlogged. The maximization of the total profit per unit of time is taken as the objective function to study the retailer’s optimal ordering policy. This paper also presents a practical application example where the proposed inventory model is utilized to support business decision making. Particularly, the model developed in the paper could be useful in the area of supply chain management. Finally, sensitivity analysis of the optimal solution with respect to major parameters is carried out. Our result illustrates that this model can be quite useful in determining the optimal ordering policy when the trade credit period is being analyzed.

The optimal ordering policy with trade credit under two different payment methods

Top ◽  
2008 ◽  
Vol 18 (2) ◽  
pp. 413-428 ◽  
Author(s):  
Mei-Chuan Cheng ◽  
Kuo-Ren Lou ◽  
Liang-Yuh Ouyang ◽  
Yun-Hwa Chiang
Keyword(s):  
Trade Credit ◽  
Payment Methods ◽  
Ordering Policy ◽  
Optimal Ordering Policy ◽  
Optimal Ordering
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