Buyer’s optimal ordering policy and payment policy under supplier credit. (English) Zbl 1126.90302

Huang, Yung-Fu

Int. J. Syst. Sci. 36, No. 13, 801-807 (2005).

Summary: This paper tries to incorporate previous studies to develop the buyer’s inventory model. That is, we want to investigate the buyer’s optimal cycle time and optimal payment time under the supplier’s trade credit policy and cash-discount policy. Mathematical models have been derived for obtaining the optimal cycle time and optimal payment time for item under the supplier’s trade credit and cash discount so that the annual total relevant cost is minimized. Furthermore, numerical examples are given to illustrate the results developed in this paper and to yield managerial implications.

MSC:

90B05	Inventory, storage, reservoirs
90B50	Management decision making, including multiple objectives

Keywords:

inventory; trade credit; cash discount

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