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**The optimal ordering policy of the EOQ model under trade credit depending on the ordering quantity from the DCF approach.**
*(English)*
Zbl 1163.90324

Summary: This paper discusses the optimum order quantity of the EOQ model that is not only dependent on the inventory policy but also on firm’ credit policy. Here, the conditions of using a discounted cash-flows (DCF) approach and trade credit depending on the quantity ordered are discussed. We consider that if the order quantity is less than at which the delay in payments is permitted, the payment for the item must be made immediately. Otherwise, the fixed trade credit period is permitted.This paper incorporates all concepts of a discounted cash-flows (DCF) approach, trade credit and the quantity ordered and develops a new inventory model to generalize Chung [Chung, K.H., 1989. Inventory control and trade credit revisited, Journal of the Operational Research Society 40, 495-498].

### MSC:

90B05 | Inventory, storage, reservoirs |

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\textit{K.-J. Chung} and \textit{J.-J. Liao}, Eur. J. Oper. Res. 196, No. 2, 563--568 (2009; Zbl 1163.90324)

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### References:

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[2] | Chung, K.H., Inventory control and trade credit revisited, Journal of the operational research society, 40, 495-498, (1989) · Zbl 0665.90021 |

[3] | Chung, K.J., Bounds on the optimum order quantity in a DCF analysis of the EOQ model under trade credit, Journal of information and optimization sciences, 20, 137-148, (1999) · Zbl 0955.90004 |

[4] | Chung, K.J.; Huang, C.K., The convexities of the present value functions of all future cash outflows in inventory and credit, Production planning and control, 11, 133-140, (2000) |

[5] | Goyal, S.K., Economic order quantity under conditions of permissible delay in payments, Journal of the operational research society, 36, 335-338, (1985) · Zbl 0568.90025 |

[6] | Jamal, A.M.M.; Sarker, B.R.; Wang, S., An ordering policy for deteriorating items with allowable shortages and permissible delay in payment, Journal of the operational research society, 48, 826-833, (1997) · Zbl 0890.90049 |

[7] | Khouja, M.; Mehrez, A., Optimal inventory policy under different supplier credits, Journal of manufacturing systems, 15, 334-339, (1996) |

[8] | Thomas, G.B.; Finney, R.L., Calculus with analytic geometry, (1996), Addison-Wesley Publishing Company Inc. |

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.