TAILIEUCHUNG - An EOQ model for deteriorating items under supplier credits when demand is stock dependent

In many circumstances retailer is not able to settle the account as soon as items are received. In that scenario supplier can offer two promotional schemes namely cash discount and /or a permissible delay to the customer. In this study, an EOQ model is developed when units in inventory deteriorate at a constant rate and demand is stock dependent. The salvage value is associated to deteriorated units. An algorithm is given to find the optimal solution. The sensitivity analysis is carried out to analyze the effect of critical parameters on optimal solution. | Yugoslav Journal of Operations Research Volume 20 (2010), Number 1, 145-156 AN EOQ MODEL FOR DETERIORATING ITEMS UNDER SUPPLIER CREDITS WHEN DEMAND IS STOCK DEPENDENT Nita H. SHAH, Poonam MISHRA Department of Mathematics, Gujarat University, Ahmedabad Gujarat, India nita_sha_h@ Received: February 2008 / Accepted: May 2010 Abstract : In many circumstances retailer is not able to settle the account as soon as items are received. In that scenario supplier can offer two promotional schemes namely cash discount and /or a permissible delay to the customer. In this study, an EOQ model is developed when units in inventory deteriorate at a constant rate and demand is stock dependent. The salvage value is associated to deteriorated units. An algorithm is given to find the optimal solution. The sensitivity analysis is carried out to analyze the effect of critical parameters on optimal solution. Keywords : Deterioration, salvage value, cash discount, trade credit, stock dependent demand. 1. INTRODUCTION Classical inventory Economic Order Quantity (EOQ) model is based on the assumption that the retailer settles the accounts as soon as items are received in his inventory. Practically, this is not possible for retailer every time therefore supplier can offer a cash discount and / or a permissible delay to the retailer if the outstanding amount is paid within the allowable fixed settlement period. For example, the supplier offers 3 % discount off the unit purchase price if the payment is made within 15 days; otherwise full price of items is due within 30 days. This credit term is usually denoted as “3/15, net 30” (, see Brigham (1995, p. 741)). Goyal (1985) derived an EOQ model under the conditions of permissible delay in payments. Shah (1993) and Aggarwal and Jaggi (1995) extended Goyal’s model to allow for deteriorating items. Jamal et al. (1997) then further generalized the model to 146 N., H., Shah, P., Mishra / An EOQ Model for .

• Ngân hàng - Tín dụng
• Salvage value
• Cash discount
• Trade credit
• Stock dependent demand
• EOQ model
• BMC Anesthesiology
• Cell salvage
• Auto transfusion
• Hematocrit value
• Autologous blood transfusion
• Blood conservation
• BMC Cancer
• Head and neck cancer
• Salvage surgery
• Concurrent chemoradiotherapy
• Prognostic gauge
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• A revision on EOQ/JIT indifference points
• EOQ/JIT indifference points
• From cost perspective
• Switch the inventory system
• Both EOQ model
• Weibull distribution deterioration
• Ramp type demand
• EOQ inventory model
• Inventory model
• Deteriorating items
• Modified economic order quantity (EOQ) model for items
• Quantity model for items with imperfect quality
• Decentralized supply chain
• Two non cooperative games
• Ramp type of demand
• Partial backlogging
• Unsatisfied demand
• Optimal replenishment policies
• Screening cost
• Imperfect quality items
• Probability distribution
• Economic order quantity
• Two component Demand
• Alternating demand rate
• Instantaneous inventory level
• Supplement to an EOQ model
• Inspection errors
• shortage backordering
• The maximum shortage level
• Hsu and Hsu
• Decision support model
• Heaviside’s function
• Discounted selling price
• Supply chain environment
• Time varying demand
• Weibull distribution
• Deterministic inventory model
• Non decreasing function
• Non negative function
• Periodic review model
• Price discount on backorder
• Delay in payment
• Exponential declining demand
• EOQ inventory mathematical model
• Backlogging rate
• Inventory control
• Price dependent demand
• Inventory models
• Temporary discount
• Imperfective items
• Infinite time horizon
• Non linear demand
• Trade credit policy
• Discounted cash flows
• Managerial finance
• Lecture Managerial finance
• Financial statements
• Cash management