Shortage linked EOQ model for Weibull-time unstable demand in the company of permitted delay in payments

2020 ◽  
Vol 3 (2) ◽  
pp. 124
Author(s):  
R.P. Tripathi ◽  
Pravin Kumar Srivastava ◽  
Hari Shyam Pandey
Keyword(s):  
Eoq Model ◽  
Delay In Payments

AN EOQ MODEL WITH LIMITED STORAGE CAPACITY UNDER TRADE CREDITS

2007 ◽  
Vol 24 (04) ◽  
pp. 575-592 ◽  
Author(s):  
LIANG-YUH OUYANG ◽  
KUN-SHAN WU ◽  
CHIH-TE YANG
Keyword(s):  
Storage Capacity ◽  
Optimal Solution ◽  
Inventory Systems ◽  
Simple Method ◽  
Eoq Model ◽  
Trade Credits ◽  
Cash Discount ◽  
Delay In Payments ◽  
Classical Economic ◽  
Theoretical Results

In the classical economic order quantity (EOQ) inventory model, it was assumed that the retailer must pay for the received items immediately. However, in practice, the supplier not only allows retailer to settle the account after a certain fixed period but also may offer a cash discount to encourage the retailer to pay for his purchases as soon as possible. On the other hand, it is common practice in most inventory systems to hold excess stocks in a rented warehouse whenever the storage capacity of the owned warehouse is insufficient. Therefore, the purpose of this paper is to establish an EOQ model with limited storage capacity, in which the supplier provides cash discount and permissible delay in payments for the retailer. In the model, we develop some useful theorems to characterize the optimal solution and provide a simple method to find the optimal replenishment cycle time and payment time. Finally, several numerical examples are given to illustrate the theoretical results and some managerial insights are also obtained.

Fuzzification of EOQ Model Under the Condition of Permissible Delay in Payments

2012 ◽  
Vol 3 (2) ◽  
pp. 1-19 ◽  
Author(s):  
Chandra K. Jaggi ◽  
Anuj Sharma ◽  
Reena Jain
Keyword(s):  
Fuzzy Numbers ◽  
Delay Period ◽  
Order Quantity ◽  
Distance Method ◽  
Permissible Delay In Payments ◽  
Signed Distance ◽  
Eoq Model ◽  
Fuzzy Environment ◽  
Delay In Payments ◽  
The Cost

This paper formulates an economic order quantity inventory model under the condition of permissible delay in payments in fuzzy environment. All the parameters of the model, excluding permissible delay period and cycle length, are taken to be trapezoidal Fuzzy numbers. The arithmetic operations are defined under the function principle. The cost function has been defuzzified using signed distance method and thereby solved to obtain the optimal replenishment period. The numerical example is presented to show the validity of the model followed by sensitivity analysis.

Retailer’s Pricing and Lot Sizing Policy for Non Deteriorating Items with Constant Demand Rate Under the Condition of Permissible Delay in Payments

2012 ◽  
Vol 3 (1) ◽  
pp. 74-84
Author(s):  
R. P. Tripathi ◽  
S. S. Misra
Keyword(s):  
Cycle Time ◽  
Lot Sizing ◽  
Deteriorating Items ◽  
Lot Size ◽  
Credit Period ◽  
Eoq Model ◽  
Develop Algorithm ◽  
Net Profit ◽  
Demand Rate ◽  
Delay In Payments

This study develops an EOQ model for retailer’s price and lot size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is a constant price elastic function for non-deteriorating items. In this study, mathematical models have been discussed under two different situations, i.e., case I: The credit period is less than or equal to cycle time for setting the account; and case II: The credit period is greater than the cycle time for setting the account. Expressions for an inventory system’s net profit are derived for these two cases. The authors develop algorithm for a retailer to determine its optimal price and lot size simultaneously, when supplier offers a permissible in payments.

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.

Deteriorating Inventory Model under Permissible Delay in Payments and Fuzzy Environment

2016 ◽  
pp. 77-99 ◽  
Author(s):  
Nita H. Shah ◽  
Sarla Pareek ◽  
Isha Sangal
Keyword(s):  
Solution Procedure ◽  
Inventory Model ◽  
Variable Cost ◽  
Selling Price ◽  
Gravity Method ◽  
Deterioration Rate ◽  
Eoq Model ◽  
Fuzzy Environment ◽  
Demand Rate ◽  
Delay In Payments

This paper deals with the problem of determining the EOQ model for deteriorating items in the fuzzy sense where delay in payments is permissible. The demand rate, ordering cost, selling price per item and deterioration rate are taken as fuzzy numbers. The total variable cost in fuzzy sense is de-fuzzified using the centre of gravity method. The solution procedure has been explained with the help of numerical example.

EOQ Model with Permissible Delay in Payments under Fuzzy Environment

2014 ◽  
pp. 281-296
Author(s):  
Chandra K. Jaggi ◽  
Anuj Sharma ◽  
Reena Jain
Keyword(s):  
Cycle Length ◽  
Delay Period ◽  
Order Quantity ◽  
Distance Method ◽  
Permissible Delay In Payments ◽  
Signed Distance ◽  
Eoq Model ◽  
Fuzzy Environment ◽  
Delay In Payments ◽  
The Cost

This chapter introduces an economic order quantity inventory model under the condition of permissible delay in payments in fuzzy environment. All the parameters of the model, excluding permissible delay period and cycle length, are taken to be trapezoidal Fuzzy numbers. The arithmetic operations are defined under the function principle. The cost function has been defuzzified using signed distance method and thereby solved to obtain the optimal replenishment period. The numerical example is presented to show the validity of the model followed by sensitivity analysis.

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