An EOQ model for deteriorating items under trade credit financing in the fuzzy sense

2007 ◽  
Vol 18 (8) ◽  
pp. 681-692 ◽  
Author(s):  
G. C. Mahata ◽  
A. Goswami
Keyword(s):  
Trade Credit ◽  
Deteriorating Items ◽  
Eoq Model ◽  
Credit Financing

Fuzzy-Based EOQ Model With Credit Financing and Backorders Under Human Learning

2021 ◽  
Vol 10 (4) ◽  
pp. 14-36
Author(s):  
Mahesh Kumar Jayaswal ◽  
Mandeep Mittal ◽  
Isha Sangal ◽  
Jayanti Tripathi
Keyword(s):  
Trade Credit ◽  
Planning Horizon ◽  
Human Learning ◽  
Lead Times ◽  
Credit Period ◽  
Eoq Model ◽  
Triangular Numbers ◽  
Credit Financing ◽  
Fuzzy Cost ◽  
The Impact

In this paper, an inventory model has been developed with trade credit financing and back orders under human learning. In this model, it is considered that the seller provides a credit period to his buyer to settle the account and the buyer accepts the credit period policy with certain terms and conditions. The impact of learning and credit financing on the size of the lot and the corresponding cost has been presented. For the development of the model, demand and lead times have been taken as the fuzzy triangular numbers are fuzzified, and then learning has been done in the fuzzy numbers. First of all, the consideration of constant fuzziness is relaxed, and then the concept of learning in fuzzy under credit financing is joined with the representation, assuming that the degree of fuzziness reduces over the planning horizon. Finally, the expected total fuzzy cost function is minimized with respect to order quantity and number of shipments under credit financing and learning effect. Lastly, sensitive analysis has been presented as a consequence of some numerical examples.

A Fuzzy EOQ Model for Deteriorating Items With Allowable Shortage and Inspection Under the Trade Credit

2018 ◽  
pp. 233-249
Author(s):  
Chandra K. Jaggi ◽  
Bimal Kumar Mishra ◽  
T. C. Panda
Keyword(s):  
Trade Credit ◽  
Method Comparison ◽  
Deteriorating Items ◽  
Order Quantity ◽  
Centroid Method ◽  
Deterioration Rate ◽  
Eoq Model ◽  
Permissible Delay In Payment ◽  
Demand Rate ◽  
Fuzzy Cost

This chapter develops an economic order quantity model for deteriorating items with initial inspection, allowable shortage under the condition of permissible delay in payment by fuzzify the demand rate, deterioration rate and inspection parameter of non-defective parameter based on as triangular fuzzy numbers to fit the real word. The total fuzzy cost function has been defuzzified using signed distance and centroid method. Comparison between these two methods has also been discussed. The validity of the model has been established with the help of a hypothetical numerical example.

scholarly journals Two-Level Credit Financing for Noninstantaneous Deterioration Items in a Supply Chain with Downstream Credit-Linked Demand

2013 ◽  
Vol 2013 ◽  
pp. 1-22 ◽  
Author(s):  
Yong He ◽  
Hongfu Huang
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Financing Policy ◽  
Sensitive Analysis ◽  
Eoq Model ◽  
Replenishment Cycle ◽  
Credit Financing ◽  
Delay In Payments ◽  
Optimal Ordering ◽  
Total Average

Trade credit financing is a useful tool in business today, which can be characterized as the agreement between supply chain members such as permissible delay in payments. In this study, we assume that the items have the property of noninstantaneous deterioration and the demand is a function of downstream credit. Then, an EOQ model for noninstantaneous deterioration is built based on the two-level financing policy. The purpose of this paper is to maximize the total average profit by determine the optimal downstream credit period, the optimal replenishment cycle length, and the optimal ordering quantity per cycle. Useful theorems are proposed to characterize the method of obtaining the optimal solutions. Based on the theorems, an algorithm is designed, and numerical tests and sensitive analysis are provided. Lastly, according to the sensitive analysis, managerial insights are proposed.

scholarly journals The EOQ Model for Deteriorating Items with a Conditional Trade Credit Linked to Order Quantity in a Supply Chain System

Mathematics ◽  
2021 ◽  
Vol 9 (18) ◽  
pp. 2311
Author(s):  
Kun-Jen Chung ◽  
Jui-Jung Liao ◽  
Hari Mohan Srivastava ◽  
Shih-Fang Lee ◽  
Shy-Der Lin
Keyword(s):  
Trade Credit ◽  
Analytic Solution ◽  
Optimal Solution ◽  
Optimization Methods ◽  
Deteriorating Items ◽  
Order Quantity ◽  
Supply Chain System ◽  
Total Cost ◽  
Eoq Model ◽  
Total Cost Function

For generality, we observed that some of the optimization methods lack the mathematical rigor and some of them are based on intuitive arguments which result in the solution procedures being questionable from logical viewpoints of a mathematical analysis such as those in the work by Ouyang et al. (2009). They consider an economic order quantity model for deteriorating items with partially permissible delays in payments linked to order quantity. Basically, their inventory models are interesting, however, they ignore explorations of interrelations of functional behaviors (continuity, monotonicity properties, differentiability, et cetera) of the total cost function to locate the optimal solution, so those shortcomings will naturally influence the implementation of their considered inventory model. Consequently, the main purpose of this paper is to provide accurate and reliable mathematical analytic solution procedures for different scenarios that overcome the shortcomings of Ouyang et al.

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