×

A deterministic EOQ model with delays in payments and price-discount offers. (English) Zbl 1149.90308

Summary: It is the purpose of this paper to model the retailer’s profit-maximizing strategy when confronted with supplier’s trade offer of credit and price-discount on the purchase of merchandise. Generally, retailers have to face many types of demands for different kinds of goods. In real situation, retailers have to correlate between the selling price and supplier’s trade offer, keeping in mind profit-maximization strategy. In the proposed model, all increasing deterministic demands are discussed analytically, numerically and graphically in the environment of permissible delay in payment and discount offer to the retailer.

MSC:

90B05 Inventory, storage, reservoirs
PDFBibTeX XMLCite
Full Text: DOI

References:

[1] Abad, P. L., Joint price and lot-size determination when supplier offers incremental quantity discounts, Journal of the Operational Research Society, 39, 603-607 (1988)
[2] Aggarwal, S. P.; Jaggi, C. K., Ordering policies of deteriorating items under permissible delay in payments, Journal of the Operational Research Society, 46, 658-662 (1995) · Zbl 0830.90032
[3] Baker, R. C.; Urban, T. L., A deterministic inventory system with a inventory-level-dependent demand rate, Journal of the Operational Research Society, 39, 823-831 (1988) · Zbl 0659.90040
[4] Buchanan, J. T., Alternative solution methods for the inventory replenishment problem under increasing demand, Journal of the Operational Research Society, 31, 615-620 (1980) · Zbl 0434.90039
[5] Burwell, T. H.; Dave, D. S.; Fitzpatrick, K. E.; Roy, M. R., An inventory model with planned shortages and price-dependent demand, Decision Sciences, 27, 1188-1191 (1991)
[6] Chang, H. J.; Dye, C. Y., An inventory model for deteriorating items with partial backlogging and permissible delay in payments, International Journal of Systems Science, 32, 345-352 (2001) · Zbl 1006.90002
[7] Chang, H. J.; Huang, C. H.; Dye, C. Y., An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments, Production Planning and Control, 12, 274-282 (2001)
[8] Chang, H. J.; Dye, C. Y., An inventory model for deteriorating items under the condition of permissible delay in payments, Yugoslav Journal of Operational Research, 1, 73-84 (2002) · Zbl 1079.90006
[9] Chen, M. S.; Chuang, C. C., An analysis of light buyer’s economic order model under trade credit, Asia-Pacific Journal of Operational Research, 16, 23-34 (1999)
[10] Chu, P.; Chung, K. J.; Lan, S. P., Economic order quantity of deteriorating items under permissible delay in payments, Computers and Operations Research, 25, 817-824 (1998) · Zbl 1042.90505
[11] Chung, K. J., A theorem on the determination of economic order quantity under conditions of permissible delay in payments, Computers and Operations Research, 25, 49-52 (1998) · Zbl 0906.90051
[12] Chung, K. J., Economic order quantity model when delay in payments is permissible, Journal of Information and Optimization Sciences, 19, 411-416 (1998) · Zbl 0952.91051
[13] Chung, K. J., The inventory replenishment policy for deteriorating items under permissible delay in payments, Opsearch, 37, 267-281 (2000) · Zbl 1141.90314
[14] Chung, K-J.; Huang, Y.-F., The optimal cycle time for EPQ inventory model under permissible delay in payments, International Journal of Production Economics, 84, 307-318 (2003)
[15] Datta, T. K.; Pal, A. K., A note on an inventory model with inventory-level-dependent demand rate, Journal of the Operational Research Society, 41, 971-975 (1990) · Zbl 0725.90028
[16] Datta, T. K.; Pal, A. K., An inventory system with stock-dependent, price-sensitive demand rate, Production Planning and Control, 12, 13-20 (2001) · Zbl 0733.90029
[17] Dave, U., On a discrete-in-time order-level inventory model for deteriorating items, Operational Research, Q-30, 349-354 (1979) · Zbl 0411.90039
[18] Dave, U., On the EOQ models with two levels of storage, Opsearch, 25, 190-196 (1988) · Zbl 0649.90040
[19] Deb, M.; Chaudhuri, K. S., A note on the heuristic for replenishment of trended inventories considering shortages, Journal of the Operational Research Society, 38, 459-463 (1987) · Zbl 0612.90020
[20] Donaldson, W. A., Inventory replenishment policy for a linear trend in demand: an analytical solution, Operational Research Quarterly, 28, 663-670 (1977) · Zbl 0372.90052
[21] Giri, B. C.; Chakraborty, T.; Chaudhuri, K. S., A note on a lot sizing heuristic for deteriorating items with time-varying demands and shortages, Computers and Operations Research, 27, 495-505 (2000) · Zbl 0955.90005
[22] Goswami, A.; Chaudhuri, K. S., An EOQ model for deteriorating items with shortages and a linear trend in demand, Journal of Operational Research Society, 42, 1105-1110 (1991) · Zbl 0741.90015
[23] Goyal, S. K., Economic order quantity under conditions of permissible delay in payments, Journal of the Operational research Society, 36, 35-38 (1985) · Zbl 0568.90025
[24] Goyal, S. K., On improving replenishment policies for linear trend in demand, Engineering Costs and Production Economics, 10, 73-76 (1986)
[25] Goyal, S. K.; Kusy, M.; Soni, R., A note on the economic order intervals for an item with linear trend in demand, Engineering Costs and Production Economics, 10, 253-255 (1986)
[26] Goyal, S. K., A heuristic for replenishment of trended inventories considering shortages, Journal of the Operational Research, 39, 885-887 (1988)
[27] Goyal, S. K.; Morin, D.; Nebebe, F., The finite horizon trended inventory replenishment problem with shortages, Journal of the Operational Research Society, 43, 1173-1178 (1992) · Zbl 0762.90021
[28] Gupta, R.; Vrat, P., Inventory model for stock-dependent consumption rate, Opsearch, 23, 19-24 (1986) · Zbl 0593.90022
[29] Hariga, M., Optimal EOQ models for deteriorating items with time-varying demand, Journal of the Operational Research society, 47, 1228-1246 (1996) · Zbl 0871.90028
[30] Hariga, M. A.; Bankherouf, L., Optimal and heuristic inventory replenishment models for deteriorating items with exponential time varying demand, European Journal of Operational Research, 79, 123-137 (1994) · Zbl 0812.90039
[31] Harris, F.W., 1915. Operations and cost (Factory Management Series), A.W. Shaw Co.; Harris, F.W., 1915. Operations and cost (Factory Management Series), A.W. Shaw Co.
[32] Hwang, H.; Moon, D. H.; Shinn, S. W., An EOQ model with quantity discounts for both purchasing price and freight cost, Computers and Operations Research, 17, 73-78 (1990) · Zbl 0682.90032
[33] Jamal, A. M.M.; Sarker, B. R.; Wang, S., An ordering policy for deteriorating items with allowable shortages and permissible delay in payment, Journal of the Operational research Society, 48, 826-833 (1997) · Zbl 0890.90049
[34] Jamal, A. M.M.; Sarker, B. R.; Wang, S., Optimal payment time for a retailer under permitted delay of payment by the wholesaler, International Journal of Production Economics, 66, 59-66 (2000)
[35] Khanra, S.; Chaudhuri, K. S., A note on an ordered-level inventory model for a deteriorating item with time-dependent quadratic demand, Computers and Operations Research, 30, 1901-1916 (2003) · Zbl 1047.90002
[36] Kicks, P.; Donaldson, W. A., Irregular demand: Assessing a rough and ready lot size formula, Journal of the Operational Research Society, 31, 725-732 (1980) · Zbl 0439.90025
[37] Kim, K. H.; Hwang, H., An incremental discount pricing schedule with multiple customers and single price break, European Journal of Operational Research, 35, 71-79 (1988)
[38] Levin, R. I.; Mc Laughlin, C. P.; Lamone, R. P.; Kottas, J. F., Productions/Operations Management: Contemporary Policy for Managing Operating Systems (1972), McGraw-Hill: McGraw-Hill New York, p. 373
[39] Liao, H. C.; Tsai, C. H.; Su, C. T., An inventory model with deteriorating items under inflation when a delay in payment is permissible, International Journal of Production Economics, 63, 207-214 (2000)
[40] Mitra, A.; Cox, J. F.; Jesse, R. R., A note on deteriorating order quantities with a linear trend in demand, Journal of the Operational Research Society, 35, 141-144 (1984) · Zbl 0528.90020
[41] Mondal, B. N.; Phaujdar, S., A note on an inventory model with stock-dependent consumption rate, Opsearch, 26, 43-46 (1989) · Zbl 0667.90031
[42] Mondal, B. N.; Phaujdar, S., An inventory model for deteriorating items and stock-dependent consumption rate, Journal of the Operational Research Society, 40, 483-488 (1989) · Zbl 0672.90036
[43] Mondal, B. N.; Phaujdar, S., Some EOQ models under permissible delay in payments, International Journal of Management Science, 5, 99-108 (1989)
[44] Murdeshwar, T. M., Inventory replenishment policy for linearly increasing demand considering shortages-an optimal solution, Journal of the Operational Research Society, 39, 687-692 (1988) · Zbl 0649.90045
[45] Pal, S.; Goswami, A.; Chaudhuri, K. S., A deterministic inventory model for deteriorating items with stock-dependent demand rate, International Journal of Production Economics, 32, 291-299 (1993)
[46] Ritchie, E., Practical inventory replenishment policies for a linear trend in demand followed by a period of steady demand, Journal of the Operational Research Society, 31, 605-613 (1980) · Zbl 0434.90038
[47] Ritchie, E., The EOQ for linear increasing demand: A simple optimal solution, Journal of the Operational Research Society, 35, 949-952 (1984) · Zbl 0546.90028
[48] Ritchie, E., Stock replenishment quantities for unbounded linear increasing demand: An interesting consequence of the optimal policy, Journal of the Operational Research Society, 36, 737-739 (1985)
[49] Ritchie, E.; Tsado, A., Penalties of using EOQ: A comparison of lot-sizing rules for linear increasing demand, Production and Inventory Management, 27, 3, 65-79 (1986)
[50] Salameh, M. K.; Abboud, N. E.; Ei-Kassar, A. N.; Ghattas, R. E., Continuous review inventory model with delay in payments, International Journal of Production Economics, 85, 91-95 (2003)
[51] Sana, S.; Chaudhuri, K. S., An alternative analytical approach for the optimal inventory replenishment policy for a deteriorating item with a time varying demand, Proceedings of National Academic Science of India, 70, (A), III, 281-293 (2000) · Zbl 0979.90010
[52] Sarker, B. R.; Jamal, A. M.M.; Wang, S., Supply chain model for perishable products under inflation and permissible delay in payment, Computers and Operations Research, 27, 59-75 (2000) · Zbl 0935.90013
[53] Sarker, B. R.; Jamal, A. M.M.; Wang, S., Optimal payment time under permissible delay in payment for products with deterioration, Production Planning and Control, 11, 380-390 (2001)
[54] Shah, V. R.; Patel, N. C.; Shah, D. K., Economic ordering quantity when delay in payments of order and shortages are permitted, Gujrat Statistical Review, 15, 2, 52-56 (1988)
[55] Shah, N. H., Probabilistic time-scheduling model for an exponentially decaying inventory when delays in payments are permissible, International Journal of Production Economics, 32, 77-82 (1993)
[56] Shah, N. H., A lot-size model for exponentially decaying inventory when delay in payments is permissible, Cahiers du CERO, 35, 115-123 (1993) · Zbl 0795.90009
[57] Shah, V. R.; Sreehari, M., An inventory model for a system with multiple storage facility, Opsearch, 33, 2, 96-106 (1996) · Zbl 0879.90074
[58] Silver, E. A.; Meal, H. C., A simple modification of the EOQ for the case of a varying demand rate, Production of Inventory Management, 10, 52-65 (1969)
[59] Silver, E. A.; Peterson, R., Decision Systems for Inventory Management and Production Planning (1985), Wiley: Wiley New York
[60] Teng, J. T., A deterministic inventory replenishment model with a linear trend in demand, Operations Research Letters, 19, 33-41 (1996) · Zbl 0865.90038
[61] Teng, J. T.; Chang, C. T., Economic production quantity models for deteriorating items with price- and stock-dependent demand, Computers and Operations Research, 32, 297-308 (2005) · Zbl 1073.90008
[62] Urban, T. L., An inventory model with an inventory-level-dependent demand rate and relaxed terminal conditions, Journal of the Operational Research Society, 43, 721-724 (1992) · Zbl 0825.90335
[63] Urban, T. L.; Baker, R. C., Optimal ordering and pricing policies in a single-period environment with multivariate demand and markdowns, European Journal of Operational Research, 103, 573-583 (1997) · Zbl 0921.90065
[64] Urban, T. L., Inventory models with inventory-level-dependent demand: A comprehensive review and unifying theory, European Journal of Operational Research, 162, 792-804 (2005) · Zbl 1067.90009
[65] Wagner, H. M.; Whitin, T. M., Dynamical version of the economic lot size model, Management Science, 5, 89-96 (1958) · Zbl 0977.90500
[66] Wee, H. M., A deterministic lot size inventory model for deteriorating items with shortages and a declining market, Computers and Operations Research, 22, 345-356 (1995) · Zbl 0827.90050
[67] Wilson, R. H., A scientific routine for stock control, Harvard Business Review, 13, 116-128 (1934)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.