A finite horizon EPQ model for deteriorating items with shortages under permissible delay in payments

Inventory models with deteriorating items have received considerable attention in recent years. In considering the deteriorating inventory with permissible delay in payments, most researchers pay attention to a single warehouse. Under conditions of permissible delay in payments, this paper develops a model to determine the optimal cycle time for a single deteriorating item that is stored in two different warehouses. A rented warehouse (RW) is used to store the excess units over the fixed capacity W of the owned warehouse (OW). The rented warehouse is assumed to charge higher unit holding cost than the OW. In this paper, we propose a two-warehouse inventory model for deteriorating items under permissible delay in payments. It is assumed that the deterioration rate in RW is the same as in OW, and the holding cost in RW is greater than that in OW. The stocks of RW are transported to OW in continuous release pattern and the transportation cost is ignored. Three theorems are developed to determine the optimal cycle time and numerical examples are given to illustrate these theorems.

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An ordering policy for deteriorating items with price-dependent iso-elastic demand under permissible delay in payments and price inflation

Mathematical and Computer Modelling of Dynamical Systems ◽

10.1080/13873954.2019.1677724 ◽

2019 ◽

Vol 25 (6) ◽

pp. 575-601

Author(s):

Puspita Mahata ◽

Gour Chandra Mahata ◽

Avik Mukherjee

Keyword(s):

Deteriorating Items ◽

Elastic Demand ◽

Price Inflation ◽

Permissible Delay In Payments ◽

Ordering Policy ◽

Delay In Payments

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Retailer Ordering Policy for Deteriorating Items with Initial Inspection and Allowable Shortage Under the Condition of Permissible Delay in Payments

International Journal of Applied Industrial Engineering ◽

10.4018/ijaie.2012010106 ◽

2012 ◽

Vol 1 (1) ◽

pp. 64-79 ◽

Cited By ~ 10

Author(s):

Chandra K. Jaggi ◽

Mandeep Mittal

Keyword(s):

Inventory Model ◽

Inventory System ◽

Deteriorating Items ◽

Permissible Delay In Payments ◽

Numerical Example ◽

Ordering Policy ◽

Delay In Payments ◽

The Impact ◽

Single Commodity

While developing the inventory model with shortages under permissible delay in payments, it has been observed in the literature, the researchers have not considered the fact that the retailer can earn interest on the revenue generated after fulfilling the outstanding demand as soon as he receives the new consignment at the start of the cycle. Owing to this fact, the present paper investigates the impact of interest earned from revenue generated after fulfilling the stock out at the start of the cycle on a single commodity inventory model with shortages for deteriorating item, in which the whole lot goes through an inspection on arrival before entering into inventory system, under the conditions of permissible delay in payments. The results have been demonstrated with the help of a numerical example using the tools of Matlab7.0.1.

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