An inventory model under two levels of trade credit and limited storage space derived without derivatives.

*(English)*Zbl 1182.90007Summary: This paper tries to incorporate both Huang’s model [Y. F. Huang, J. Oper. Res. Soc. 54, No. 9, 1011–1015 (2003; Zbl 1097.90501)] and Teng’s model [J. T. Teng, J. Oper. Res. Soc. 53, No. 8, 915–918 (2002; Zbl 1098.90006)] by considering the retailer’s storage space limited to reflect the real-life situations. That is, we want to investigate the retailer’s inventory policy under two levels of trade credit and limited storage space. Furthermore, we adopt Teng’s viewpoint [loc. cit.] that the retailer’s unit selling price and the purchasing price per unit are not necessarily equal. Then, an algebraic approach is provided and three easy-to-use theorems are developed to efficiently determine the optimal cycle time. Some previously published results of other researchers can be deduced as special cases. Finally, a numerical example is given to illustrate these theorems and managerial insights are drawn.

##### MSC:

90B05 | Inventory, storage, reservoirs |

PDF
BibTeX
XML
Cite

\textit{Y.-F. Huang}, Appl. Math. Modelling 30, No. 5, 418--436 (2006; Zbl 1182.90007)

Full Text:
DOI

##### References:

[1] | Teng, J.T., On the economic order quantity under conditions of permissible delay in payments, J. oper. res. soc., 53, 915-918, (2002) · Zbl 1098.90006 |

[2] | Goyal, S.K., Economic order quantity under conditions of permissible delay in payments, J. oper. res. soc., 36, 335-338, (1985) · Zbl 0568.90025 |

[3] | Chung, K.J., A theorem on the determination of economic order quantity under conditions of permissible delay in payments, Comput. oper. res., 25, 49-52, (1998) · Zbl 0906.90051 |

[4] | Aggarwal, S.P.; Jaggi, C.K., Ordering policies of deteriorating items under permissible delay in payments, J. oper. res. soc., 46, 658-662, (1995) · Zbl 0830.90032 |

[5] | Liao, H.C.; Tsai, C.H.; Su, C.T., An inventory model with deteriorating items under inflation when a delay in payment is permissible, Int. J. prod. econ., 63, 207-214, (2000) |

[6] | Sarker, B.R.; Jamal, A.M.M.; Wang, S., Supply chain model for perishable products under inflation and permissible delay in payment, Comput. oper. res., 27, 59-75, (2000) · Zbl 0935.90013 |

[7] | Jamal, A.M.M.; Sarker, B.R.; Wang, S., An ordering policy for deteriorating items with allowable shortages and permissible delay in payment, J. oper. res. soc., 48, 826-833, (1997) · Zbl 0890.90049 |

[8] | Chang, H.J.; Dye, C.Y., An inventory model for deteriorating items with partial backlogging and permissible delay in payments, Int. J. syst. sci., 32, 345-352, (2001) · Zbl 1006.90002 |

[9] | Chang, H.J.; Hung, C.H.; Dye, C.Y., An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments, Prod. plan. control, 12, 274-282, (2001) |

[10] | Hwang, H.; Shinn, S.W., Retailer’s pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments, Comput. oper. res., 24, 539-547, (1997) · Zbl 0882.90029 |

[11] | Jamal, A.M.M.; Sarker, B.R.; Wang, S., Optimal payment time for a retailer under permitted delay of payment by the wholesaler, Int. J. prod. econ., 66, 59-66, (2000) |

[12] | Sarker, B.R.; Jamal, A.M.M.; Wang, S., Optimal payment time under permissible delay in payment for products with deterioration, Prod. plan. control, 11, 380-390, (2000) |

[13] | Chung, K.J.; Huang, Y.F., The optimal cycle time for EPQ inventory model under permissible delay in payments, Int. J. prod. econ., 84, 307-318, (2003) |

[14] | Huang, Y.F.; Chung, K.J., Optimal replenishment and payment policies in the EOQ model under cash discount and trade credit, Asia-Pacific J. oper. res., 20, 177-190, (2003) · Zbl 1165.90319 |

[15] | Arcelus, F.J.; Shah, N.H.; Srinivasan, G., Retailer’s pricing, credit and inventory policies for deteriorating items in response to temporary price/credit incentives, Int. J. prod. econ., 81-82, 153-162, (2003) |

[16] | Abad, P.L.; Jaggi, C.K., A joint approach for setting unit price and the length of the credit period for a seller when end demand is price sensitive, Int. J. prod. econ., 83, 115-122, (2003) |

[17] | Salameh, M.K.; Abboud, N.E.; El-Kassar, A.N.; Ghattas, R.E., Continuous review inventory model with delay in payments, Int. J. prod. econ., 85, 91-95, (2003) |

[18] | Shinn, S.W.; Hwang, H., Optimal pricing and ordering policies for retailers under order-size-dependent delay in payments, Comput. oper. res., 30, 35-50, (2003) · Zbl 1029.90008 |

[19] | Chang, C.T.; Ouyang, L.Y.; Teng, J.T., An EOQ model for deteriorating items under supplier credits linked to ordering quantity, Appl. math. modell., 27, 983-996, (2003) · Zbl 1046.90004 |

[20] | Chung, K.J.; Liao, J.J., Lot-sizing decisions under trade credit depending on the ordering quantity, Comput. oper. res., 31, 909-928, (2004) · Zbl 1048.90016 |

[21] | Huang, Y.F., Optimal retailer’s ordering policies in the EOQ model under trade credit financing, J. oper. res. soc., 54, 1011-1015, (2003) · Zbl 1097.90501 |

[22] | Benkherouf, L., A deterministic order level inventory model for deteriorating items with two storage facilities, Int. J. prod. econ., 48, 167-175, (1997) |

[23] | Bhunia, A.K.; Maiti, M., A two-warehouse inventory model for deteriorating items with a linear trend in demand and shortages, J. oper. res. soc., 49, 187-292, (1998) · Zbl 1111.90308 |

[24] | Goswami, A.; Chaudhuri, K.S., An economic order quantity model for items with two levels of storage for a linear trend in demand, J. oper. res. soc., 43, 157-167, (1997) · Zbl 0764.90026 |

[25] | Pakkala, T.P.M.; Achary, K.K., A deterministic inventory model for deteriorating items with two warehouses and finite replenishment rate, Eur. J. oper. res., 57, 71-76, (1992) · Zbl 0760.90029 |

[26] | Sarma, K.V.S., A deterministic order level inventory model for deteriorating items with two storage facilities, Eur. J. oper. res., 29, 70-73, (1980) · Zbl 0614.90027 |

[27] | Wu, K.S., Deterministic inventory models for deteriorating items with shortages and two warehouses, Int. J. inform. manage. sci., 11, 33-48, (2000) · Zbl 0969.90008 |

[28] | Cárdenas-Barrón, L.E., The economic production quantity (EPQ) with shortage derived algebraically, Int. J. prod. econ., 70, 289-292, (2001) |

[29] | Grubbström, R.W.; Erdem, A., The EOQ with backlogging derived without derivatives, Int. J. prod. econ., 59, 529-530, (1999) |

[30] | Yang, P.C.; Wee, H.M., The economic lot size of the integrated vendor-buyer inventory system derived without derivatives, Optim. control appl. meth., 23, 163-169, (2002) · Zbl 1072.90503 |

[31] | Wu, K.S.; Ouyang, L.Y., An integrated single-vendor single-buyer inventory system with shortage derived algebraically, Prod. plan. control, 14, 555-561, (2003) |

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. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.