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Chung, Kun-Jen; Liao, Jui-Jung

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

Eur. J. Oper. Res. 196, No. 2, 563-568 (2009).
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].

Cited in 16 Documents

MSC:

90B05 Inventory, storage, reservoirs

Keywords:

discounted cash-flows (DCF); trade credit; inventory
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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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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.