scholarly journals Retailer’s optimal ordering policies for EOQ model with imperfective items under a temporary discount

2016 ◽  
Vol 26 (2) ◽  
pp. 219-240
Author(s):  
Wen Lin ◽  
Horng Chang
Keyword(s):  
Economic Order Quantity ◽  
Order Quantity ◽  
Objective Functions ◽  
Inventory Models ◽  
Screening Process ◽  
Numerical Examples ◽  
Closed Form Solutions ◽  
Eoq Model ◽  
Optimal Ordering ◽  
Special Order

In this article, we study inventory models to determine the optimal special order and maximum saving cost of imperfective items when the supplier offers a temporary discount. The received items are not all perfect and the defectives can be screened out by the end of 100% screening process. Three models are considered according to the special order occurs at regular replenishment time, non-regular replenishment time, and screening time of economic order quantity cycle. Each model has two sub-cases to be discussed. In temporary discount problems, in general, there are integer operators in objective functions. We suggest theorems to find the closed-form solutions to these kinds of problems. Furthermore, numerical examples and sensitivity analysis are given to illustrate the results of the proposed properties and theorems.

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.

Economic-order-type inventory models for non-instantaneous deteriorating items and backlogging

2018 ◽  
Vol 52 (3) ◽  
pp. 895-901 ◽  
Author(s):  
Bashair Ahmad ◽  
Lakdere Benkherouf
Keyword(s):  
Optimal Policy ◽  
Order Type ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Models ◽  
Threshold Policy ◽  
Deterioration Model ◽  
Eoq Model ◽  
Unique Critical Point

This paper is concerned with finding the optimal economic order quantity for the basic (EOQ) inventory model with backlogging in the presence of non-instantaneous deterioration. It is shown that the optimal EOQ is a threshold policy. That is, (i) if the time at which deterioration begins in the non-instantaneous deterioration model is greater than or equal to the time at which backlogging begins in the basic (EOQ) model, then the optimal policy is determined by the parameters of the basic (EOQ) model, else (ii) the optimal policy corresponds to the unique critical point of the objective function for the model with non-instantaneous deterioration. An approach for determining this policy is proposed. This approach is simple and easy to implement. Moreover, it does not suffer from the shortcomings of existing approaches in the literature. A numerical example is presented for illustration.

scholarly journals Inventory models with stock - and price-dependent demand for deteriotating items based on limited space

2022 ◽  
Vol 12 (1) ◽  
pp. 0-0
Keyword(s):  
Optimal Solution ◽  
Selling Price ◽  
Order Quantity ◽  
Inventory Models ◽  
Stock Level ◽  
Numerical Examples ◽  
Eoq Model ◽  
Eoq Models ◽  
Demand Rate ◽  
Dependent Demand

This paper deals with the problem of determining the optimal selling price and order quantity simultaneously under EOQ model for deteriorating items. It is assumed that the demand rate depends not only on the on-display stock level but also the selling price per unit, as well as the amount of shelf/display space is limited. We formulate two types of mathematical models to manifest the extended EOQ models for maximizing profits and derive the algorithms to find the optimal solution. Numerical examples are presented to illustrate the models developed and sensitivity analysis is reported.

scholarly journals Inventory Models with Defective Units and Sub-Lot Inspection

Mathematics ◽  
2020 ◽  
Vol 8 (6) ◽  
pp. 1038
Author(s):  
Han-Wen Tuan ◽  
Gino K. Yang ◽  
Kuo-Chen Hung
Keyword(s):  
Lower Bound ◽  
Optimal Solution ◽  
Upper Bounds ◽  
Interior Solution ◽  
Order Quantity ◽  
Inventory Models ◽  
Defective Items ◽  
Numerical Examples ◽  
Counter Example ◽  
Analytical Foundation

Inventory models must consider the probability of sub-optimal manufacturing and careless shipping to prevent the delivery of defective products to retailers. Retailers seeking to preserve a reputation of quality must also perform inspections of all items prior to sale. Inventory models that include sub-lot sampling inspections provide reasonable conditions by which to establish a lower bound and a pair of upper bounds in terms of order quantity. This should make it possible to determine the conditions of an optimal solution, which includes a unique interior solution to the problem of an order quantity satisfying the first partial derivative. The approach proposed in this paper can be used to solve the boundary. These study findings provide the analytical foundation for an inventory model that accounts for defective items and sub-lot sampling inspections. The numerical examples presented in a previous paper are used to demonstrate the derivation of an optimal solution. A counter-example is constructed to illustrate how existing iterative methods do not necessarily converge to the optimal solution.

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.

scholarly journals Optimizing Multi-Item EOQ when the Constraint of Annual Number of Orders is Active

2016 ◽  
Vol 11 (1) ◽  
pp. 55
Author(s):  
Karzan Mahdi Ghafour ◽  
Rezan Hama Rashid
Keyword(s):  
Economic Order Quantity ◽  
Annual Number ◽  
Order Quantity ◽  
Inventory Models ◽  
Lagrange Method ◽  
Left Hand ◽  
Side Condition ◽  
Proposed Model ◽  
The Right ◽  
New Formula

The responsibility in inventory models decides of how much or how many of inventory items to order. An economic order quantity (EOQ) differs from a model to another according to the assumptions and the variables. This paper has developed the EOQ in two deterministic inventory model (Purchases with shortage and production with shortage) of multi-item when the objective function is subjected to annual number of orders. The constraints are assumed to be active if the left hand side does not satisfy the right hand side condition. Thus, Lagrange method is used to find the new multi-item EOQ in each two models with the constraint to achieve the new formula of EOQ. Finally, a numerical example is provided to justify the proposed model.

Economic Order Quantity Model for Minimizing Total Inventory Cost at PT PQR in Indonesia

2015 ◽  
Vol 21 (4) ◽  
pp. 1053-1056
Author(s):  
Bachtiar H. Simamora
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Traditional Practice ◽  
Inventory Costs ◽  
Eoq Model ◽  
Total Inventory

The purpose of this research is to see whether an Economic Order Quantity model can be used to reduce cost of inventory significantly in PT PQR, manufacturer of spring and sponge mattresses in Pekanbaru, Indonesia. The research was conducted on three main materials required in producing spring and sponge mattresses. Using Economic Order Quantity (EOQ) model to analyze historical demand on main materials, it is proven that with EOQ model the company can save by more than 45% from procuring and inventory costs of those materials. The research continues to forecast the sales demand to get the annual requirement of materials needed in 2014 and calculate the EOQ model again. The results show that, comparing with traditional practice done by company, EOQ model can reduce costs up to 118 million rupiah per year.

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