Optimal Order Quantity with Endogenous Discounted Partial Advance Payment and Trade-credit for Inventory Model with Linear Time varying Demand

2020 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Swati Agrawal ◽  
Snigdha Banerjee ◽  
Rajesh Gupta
Keyword(s):  
Trade Credit ◽  
Linear Time ◽  
Inventory Model ◽  
Optimal Order ◽  
Time Varying ◽  
Order Quantity ◽  
Advance Payment ◽  
Optimal Order Quantity ◽  
Varying Demand

scholarly journals Trade Credit with Barter in a Capital-Constrained Supply Chain

2021 ◽  
Vol 13 (20) ◽  
pp. 11361
Author(s):  
Yangyang Huang ◽  
Zhenyang Pi ◽  
Weiguo Fang
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Wholesale Price ◽  
Uncertain Demand ◽  
Equilibrium Strategy ◽  
Optimal Order ◽  
Order Quantity ◽  
Supply Rate ◽  
Optimal Order Quantity ◽  
And Performance

Barter has emerged to alleviate capital pressure, maximize the circulation of goods, and facilitate the disposal of excess inventory. This study considers a two-level supply chain consisting of a manufacturer and a capital-constrained retailer with trade credit, in which the retailer exchanges unsold products for needed subsidiary products on a barter platform. The retailer’s optimal order quantity and the manufacturer’s wholesale price are derived, and the influences of barter and other factors on the equilibrium strategy and performance of the supply chain are examined; these results are verified and supplemented by numerical simulation. We find that the retailer can increase profit by bartering when facing highly uncertain demand, that the retailer’s optimal order quantity increases with the supply rate and demand for subsidiary products, and that both manufacturer and retailer benefit from the high supply rate of subsidiary products. However, barter induces the manufacturer to raise the wholesale price to prevent its profit from being harmed. In addition, the manufacturer suffers from the retailer’s initial capital.

An Optimal Inventory Policy for Items Having Constant Demand and Constant Deterioration Rate with Trade Credit

2012 ◽  
Vol 5 (2) ◽  
pp. 89-95 ◽  
Author(s):  
R. P. Tripathi ◽  
S. S. Misra
Keyword(s):  
Trade Credit ◽  
Optimal Order ◽  
Order Quantity ◽  
Inventory Models ◽  
Inventory Policy ◽  
Deterioration Rate ◽  
Optimal Order Quantity ◽  
Optimal Ordering ◽  
Constant Deterioration ◽  
Ordering Quantity

In most of the classical inventory models the demand is considered as constant. In this paper the model has been framed to study the items whose demand and deterioration both are constant. The authors developed a model to determine an optimal order quantity by using calculus technique of maxima and minima. Thus, it helps a retailer to decide its optimal ordering quantity under the constraints of constant deterioration rate and constant pattern of demand.

Utilizing Simulation to Build a Retail Store Inventory Optimization Model

2013 ◽  
Vol 5 (1) ◽  
Author(s):  
VICENTE SALVADOR E. MONTAÑO ◽  
MICHAEL E. CARTER II
Keyword(s):  
Simulation Model ◽  
Goodness Of Fit ◽  
Inventory Model ◽  
T Test ◽  
Optimal Order ◽  
Order Quantity ◽  
Goodness Of Fit Test ◽  
Reorder Point ◽  
Kolmogorov Smirnov ◽  
Optimal Order Quantity

The researchers build an inventory model for retail stores by validating their economicorder quantity through data driven simulation. This paper created an inventoryoptimization model for a personal care retailing business, to avoid stock out and minimize their holding cost and ordering cost. Simulating a thousand different scenarios, the research come up with an optimal inventory model for the two most sellable products in the store. The t-test reveals that product A has a significantly higher demand than product B. The simulation model validates the optimal order quantity of 59 units, with a reorder point of 25 units for product A. However, the simulation model recommends an optimal order quantity of 37 units and a reorder point of 10 units for product B. The Kolmogorov-Smirnov Goodness of Fit Test reveals the normal distribution of the 30 days inventory for Product A but not for Product B. Confirming that stocks out will unlikely happen for product A but will probably occur for product B. The model confirms EOQ findings of product with relatively high demand but low price but a departure for products with low demand but the high price.Keywords: Operations management, retail inventory system, t-test, Monte Carlo Simulation,Kolmogorov-Smirnov Goodness of Fit Test, Davao City, Philippines, Southeast Asia

scholarly journals Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Honglin Yang ◽  
Ya Yu ◽  
Yong Zha ◽  
Jijun Yuan
Keyword(s):  
Numerical Simulation ◽  
Supply Chain ◽  
Trade Credit ◽  
Equilibrium Analysis ◽  
Optimal Order ◽  
Order Quantity ◽  
Optimal Decisions ◽  
Game Equilibrium ◽  
Optimal Order Quantity ◽  
To Receive

In real supply chain, a capital-constrained retailer has two typical payment choices: the up-front payment to receive a high discount price or the delayed payment to reduce capital pressure. We compare with the efficiency of optimal decisions of different participants, that is, supplier, retailer, and bank, under both types of payments based on a game equilibrium analysis. It shows that under the equilibrium, the delayed payment leads to a greater optimal order quantity from the retailer compared to the up-front payment and, thus, improves the whole benefit of the supply chain. The numerical simulation for the random demand following a uniform distribution further verifies our findings. This study provides novel evidence that a dominant supplier who actively offers trade credit helps enhance the whole efficiency of a supply chain.

Retailer's Optimal Ordering Policy under Conditions of Allowable Shortage and Two-Level Trade Credit Derived without Derivatives

2013 ◽  
Vol 694-697 ◽  
pp. 3428-3433
Author(s):  
Fei Hu
Keyword(s):  
Differential Calculus ◽  
Trade Credit ◽  
Algebraic Method ◽  
Optimal Order ◽  
Order Quantity ◽  
Numerical Examples ◽  
Ordering Policy ◽  
Optimal Order Quantity ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

An inventory model was developed to determine an ordering policy for the retailer under conditions of allowable shortage and two levels of delay permitted. We present a simple algebraic method to replace the use of differential calculus for determining the retailer's optimal ordering policy. A theorem is presented to obtain the optimal order quantity, and numerical examples are given to illustrate the results obtained in this paper.

RETAILER'S INVENTORY POLICY AND SUPPLIER'S DELIVERY POLICY UNDER TWO-LEVEL TRADE CREDIT STRATEGY

2007 ◽  
Vol 24 (05) ◽  
pp. 613-630 ◽  
Author(s):  
CHIA-HSIEN SU ◽  
LIANG-YUH OUYANG ◽  
CHIA-HUEI HO ◽  
CHUN-TAO CHANG
Keyword(s):  
System Performance ◽  
Trade Credit ◽  
Optimal Order ◽  
Profit Function ◽  
Entire System ◽  
Order Quantity ◽  
Supply Chain System ◽  
Credit Period ◽  
Production Run ◽  
Optimal Order Quantity

This paper presents a stylized model to determine the optimal strategy for the integrated supplier-retailer inventory model under the condition that both the supplier and retailer have adopted a trade credit strategy. By analyzing the total channel profit function, we develop an algorithm to simultaneously determine the retailer's optimal order quantity and the number of shipment per production run from the supplier to the retailer. Our results demonstrate that the trade credit strategy is effective to supply chain system performance when customers are sensitive to the credit period length offered by the retailer. Moreover, when customers are sensitive to the credit period, if the retailer conveys partial advantage gained from the trade credit offered by the supplier to customers by suitably adjusting the customer's credit period then the entire system and every channel partner can benefit.

A New Fuzzy Backorder Inventory Model for the Decision Making of Material Inventory in the Manufacture System

2010 ◽  
Vol 431-432 ◽  
pp. 106-109 ◽  
Author(s):  
Chien Chang Chou
Keyword(s):  
Inventory Management ◽  
Fuzzy Number ◽  
Inventory Model ◽  
Optimal Order ◽  
Fuzzy Approach ◽  
Order Quantity ◽  
Square Roots ◽  
Manufacture System ◽  
The Past ◽  
Optimal Order Quantity

Inventory management is one of important issues in the manufacture system. Thus, this paper proposes a new fuzzy approach to solve the inventory management problems in the manufacture system. In the past, few papers discussed the square roots of fuzzy number. The square roots of fuzzy number can be applied to solve the optimal inventory quantity problems in the fuzzy manufacture system. This paper first proposed the square roots of fuzzy number. Finally, the square roots of fuzzy number are applied to obtain the optimal order quantity for the fuzzy backorder inventory model in the manufacture system.

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