A NOTE ON “THE EFFECT OF TIME-VALUE OF MONEY ON DISCRETE TIME-VARYING DEMAND LOT-SIZING MODELS WITH LEARNING AND FORGETTING CONSIDERATIONS”

2005 ◽  
Vol 50 (1) ◽  
pp. 87-90 ◽  
Author(s):  
Abdullah Eroglu ◽  
Gultekin Ozdemir
Keyword(s):  
Discrete Time ◽  
Lot Sizing ◽  
Time Varying ◽  
Time Value Of Money ◽  
Time Value ◽  
Varying Demand ◽  
Value Of Money

Inventory Policy for a Deteriorating Item with Time-Varying Demand Under Trade Credit and Inflation

2019 ◽  
Vol 7 (2) ◽  
pp. 115-133 ◽  
Author(s):  
Luqi Wang ◽  
Zhijian Chen ◽  
Mingyao Chen ◽  
Ruijie Zhang
Keyword(s):  
Time Horizon ◽  
Trade Credit ◽  
Delay Period ◽  
Time Varying ◽  
Time Value Of Money ◽  
Time Value ◽  
Investment Return ◽  
Finite Time Horizon ◽  
Varying Demand ◽  
Value Of Money

Abstract It’s often the case that the supplier will provide the retailer with a permissible delay period in payments, during which the supplier charges the retailer no interest and the retailer accumulates interest earned from investment return. As a type of price reduction and an alternative to price discount, trade credit helps the supplier encourage the retailer’s ordering. This paper develops an inventory replenishment model for a deteriorating item with time-varying demand and shortages, taking account of trade credit and time value of money under inflation over a finite time horizon. This model is an extension and development of the existing studies related to the inventory system considering trade credit and time value of money and offers a more general model with more flexibility and resilience to handle the situation where demand of the end market is non-decreasing with regard to time.

The Time Value of Money Concept in Islamic Finance

2006 ◽  
Vol 23 (1) ◽  
pp. 66-89
Author(s):  
Abu Umar Faruq Ahmad ◽  
M. Kabir Hassan
Keyword(s):  
Basic Element ◽  
Islamic Finance ◽  
Purchasing Power ◽  
Conventional Theory ◽  
Modus Operandi ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money ◽  
Future Date ◽  
Rule Out

The time value of money is a basic investment concept and a basic element in the conventional theory of finance. The Shari`ah does not rule out this consideration, for it does not prohibit any increment in a loan given to cover the price of a commodity in any sale contract to be paid at a future date. What is prohibited, however, is making money’s time value an element of any lending relationship that considers it to have a predetermined value. Here, the Shari`ah requires that a loan be due in the same currency in which it was given. The value (i.e., purchasing power) of paper currencies varies due to changes in many variables over which the two parties of a loan contract usually have no control. This study examines possible modus operandi of time valuation according to the Shari`ah’s precepts vis-à-vis the concept of money, and whether any value can be attributed to time while considering money’s value. For this purpose, it investigates the juristic views on such relevant issues as the permissibility of difference between a commodity’s cash and credit prices and an increase and reduction of the loan’s amount in return for early repayment.

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