Ordering policies of deteriorating items under permissible delay in payments. (English) Zbl 0830.90032

Aggarwal, S. P.; Jaggi, C. K.

J. Oper. Res. Soc. 46, No. 5, 658-662 (1995).

Summary: In developing mathematical models in inventory control it is assumed that payment will be made to the supplier for the goods immediately after receiving the consignment. However, in practice, it is found that the supplier allows a certain fixed period to settle the account. During this fixed period no interest is charged by the supplier, but beyond this period interest is charged under the terms and conditions agreed upon and, moreover, interest can be earned on the revenue received during the credit period. In this paper an attempt has been made to obtain the optimum order quantity of deteriorating items under a permissible delay in payments. A numerical example is also given.

MSC:

90B05

Inventory, storage, reservoirs

Keywords:

optimum order quantity; deteriorating items