Optimal manufacturer’s replenishment policies in the EPQ model under two levels of trade credit policy. (English) Zbl 1159.90009

Teng, Jinn-Tsair; Chang, Chun-Tao

Eur. J. Oper. Res. 195, No. 2, 358-363 (2009).

Summary: Y.-F. Huang [Eur. J. Oper. Res. 176, No. 3, 1577–1591 (2007; Zbl 1110.90007)] proposed the optimal retailer’s replenishment decisions in the EPQ model under two levels of trade credit policy, in which the supplier offers the retailer a permissible delay period \(M\), and the retailer in turn provides its customer a permissible delay period \(N\) (with \(N < M)\). In this paper, we extend his EPQ model to complement the shortcoming of his model. In addition, we relax the dispensable assumptions of \(N < M\) and others. We then establish an appropriate EPQ model to the problem, and develop the proper theoretical results to obtain the optimal solution. Finally, a numerical example is used to illustrate the proposed model and its optimal solution.

MSC:

90B05

Inventory, storage, reservoirs

Keywords:

inventory; EPQ; trade credits; permissible delay in payments

Citations:

Zbl 1110.90007

References:

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