scholarly journals Optimality of Cycle Time and Inventory Decisions in a Two Echelon Inventory System under Credit Period

2014 ◽  
Vol 97 ◽  
pp. 2269-2278
Author(s):  
Seelam Krugon ◽  
Dega Nagaraju ◽  
S. Narayanan
Keyword(s):  
Cycle Time ◽  
Inventory System ◽  
Credit Period ◽  
Inventory Decisions

scholarly journals Two – Warehouse Inventory System Model for Deteriorating Items Considering Partial Upstream Trade Credit Financing

2021 ◽  
pp. 69-80
Author(s):  
Z. H. Aliyu ◽  
B. Sani
Keyword(s):  
Sensitivity Analysis ◽  
Credit Risk ◽  
Trade Credit ◽  
Optimal Solution ◽  
Inventory System ◽  
System Model ◽  
Credit Period ◽  
Business Transaction ◽  
Credit Financing ◽  
Relevant Cost

In this study, we developed an inventory system model under two – level trade credit where the supplier considers the retailer as credit risk but the retailer considers the customers as credit worthy. Therefore, the retailer is given a trade credit period on  proportion of the goods ordered whenever he/she pays for proportion of the goods immediately after delivery. In the same vein, the retailer passes the same grace to the customers but without attaching any condition as the customers are assumed credit worthy. This partial upstream trade credit is offered to reduce the risk of failure in payment on the business transaction especially that most retailers are involved in bulk orders. The relevant cost functions are determined and a numerical example is given. Sensitivity analysis was carried out to see the effect of changes in parameters on the optimal solution of the model.

Retailer’s Pricing and Lot Sizing Policy for Non Deteriorating Items with Constant Demand Rate Under the Condition of Permissible Delay in Payments

2012 ◽  
Vol 3 (1) ◽  
pp. 74-84
Author(s):  
R. P. Tripathi ◽  
S. S. Misra
Keyword(s):  
Cycle Time ◽  
Lot Sizing ◽  
Deteriorating Items ◽  
Lot Size ◽  
Credit Period ◽  
Eoq Model ◽  
Develop Algorithm ◽  
Net Profit ◽  
Demand Rate ◽  
Delay In Payments

This study develops an EOQ model for retailer’s price and lot size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is a constant price elastic function for non-deteriorating items. In this study, mathematical models have been discussed under two different situations, i.e., case I: The credit period is less than or equal to cycle time for setting the account; and case II: The credit period is greater than the cycle time for setting the account. Expressions for an inventory system’s net profit are derived for these two cases. The authors develop algorithm for a retailer to determine its optimal price and lot size simultaneously, when supplier offers a permissible in payments.

Retailer’s Ordering and Discounting Policies Under Advance Sales Discount and Trade Credit Based on Sharia

2012 ◽  
Vol 59 (2) ◽  
Author(s):  
Chairul Saleh ◽  
Achmad Chairdino Leuveano ◽  
Reny Lagaida ◽  
Md. Razali Muhammad
Keyword(s):  
Mathematical Model ◽  
Cycle Time ◽  
Trade Credit ◽  
Price Discount ◽  
Inventory Cost ◽  
Conventional Model ◽  
Credit Period ◽  
Model Based ◽  
Advance Sales ◽  
Replenishment Cycle

The use of conventional model to minimize the inventory cost creates a disturbance between the sellers and buyers. It creates a usury since the payment conducts to interest paid and interest earned. In this paper, sharia principle is implemented, that is Bai Al Istishna which allows credit period and margin agreement as the payment. The model is engaged to replenishment cycle time and price discount policy to attract the customer’s demand which based on sharia principle. This paper provides a useful mathematical model based on sharia principles in order to usury/interest can be eliminated in the trading process.

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