Multi-item, economic order quantity model with permissible delay in payments and a budget constraint

2008 ◽  
Vol 2 (4) ◽  
pp. 446 ◽  
Author(s):  
Srimathy Mohan ◽  
Gopalakrishnan Mohan ◽  
Ashok Chandrasekhar
Keyword(s):  
Budget Constraint ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Permissible Delay In Payments ◽  
Delay In Payments

ECONOMIC ORDER QUANTITY UNDER CONDITIONS OF A ONE-TIME-ONLY EXTENDED PERMISSIBLE DELAY PERIOD IN PAYMENTS

2008 ◽  
Vol 25 (02) ◽  
pp. 267-277 ◽  
Author(s):  
SURESH KUMAR GOYAL ◽  
CHUN-TAO CHANG
Keyword(s):  
Business Environment ◽  
Delay Period ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Permissible Delay In Payments ◽  
Numerical Examples ◽  
Delay In Payments ◽  
Theoretical Results ◽  
Special Order

In today's business environment, a supplier usually offers customers a permissible delay for settling outstanding account balance for the goods supplied. However, a supplier on occasion may allow this permissible delay in payments to be more than the usual during a given specified period. In this paper, we establish an appropriate model for a customer to determine its optimal special order quantity when the supplier offers a special extended permissible delay for one time only during a specified period. We then establish two theorems for a customer to find the optimal special order quantity. Finally, several numerical examples are given to illustrate the theoretical results.

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