Abstract
The paper develops an Economic Order Quantity (EOQ) model with current inventory-dependent and linearly increasing time-varying demand under trade credit financing, which is suitable for the growth stage of a product life cycle. The cost function of the model is minimized. An efficient solution procedure is shown for determine the optimal ordering interval of the model. Finally, numerical examples are presented to illustrate the optimization procedure and the sensitivity analysis is also examined for changes in the partial parameters. Furthermore, it deduces some previous published results as the special cases of the proposed models.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Goyal SK (1985) Economic order quantity under conditions of permissible delay in payments. J Oper Res Soc 36:335–338
Sarker BR, Jamal AMM, Wang SJ (2000) Optimal payment time under permissible delay in payment for products with deterioration. Prod Plann Control 11:380–390
Huang YF (2003) Optimal retailer’s ordering policies in the EOQ model under trade credit financing. J Oper Res Soc 54:1011–1015
Jain D, Aggarwal KK (2012) The effect of inflation-induced demand and trade credit on ordering policy of exponentially deteriorating and imperfect quality items. Int Trans Oper Res 19:863–889
Levin RI, Mclaughlin CP, Lamone RP, Kottas JF (1972) Productions/operations management: contemporary policy for managing operating systems. McGraw-Hill, New York 373
Min J, Zhou YW, Liu GQ, Wang SD (2012) An EPQ model for deteriorating items with inventory-level-dependent demand and permissible delay in payments. Int J Syst Sci 43:1039–1053
Omar M, Yeo I (2006) An analytical solution procedure for a batch production system under a linearly increasing time-varying demand. Comput Ind Eng 51:693–697
Sarkar T, Ghosh SK, Chaudhuri KS (2012) An optimal inventory replenishment policy for a deteriorating item with time-quadratic demand and time-dependent partial backlogging with shortages in all cycles. Appl Math Comput 218:9147–9155
Chang HJ, Hung CH, Dye CY (2001) An inventory model for deteriorating items with linear trend demand under the condition of permissible delay in payments. Prod Plann Control 12:274–282
Khanra S, Ghosh SK, Chaudhuri KS (2011) An EOQ model for a deteriorating item with time dependent quadratic demand under permissible delay in payment. Appl Math Comput 218:1–9
Omar M (2012) A replenishment inventory model for items under time-varying demand rates considering trade credit period and cash discount for a finite time horizon. Sains Malaysiana 41:493–497
Teng JT, Min J, Pan QH (2012) Economic order quantity model with trade credit financing for non-decreasing demand. Omega 40:328–335
Teng JT, Ouyang LY, Chen LH (2006) Optimal manufacturer's pricing and lot-sizing policies under trade credit financing. Int Trans Oper Res, 13(6):515–528
Acknowledgment
This work is supported by National Natural Science Foundation (NNSF) of China under Grant 71071007.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2016 Atlantis Press and the author(s)
About this paper
Cite this paper
Wu, Cf., Zhao, Qh. (2016). Optimal Ordering Policies with Time-Varying and Inventory-Dependent Demand Under Trade Credit Financing. In: Qi, E. (eds) Proceedings of the 6th International Asia Conference on Industrial Engineering and Management Innovation. Atlantis Press, Paris. https://doi.org/10.2991/978-94-6239-148-2_42
Download citation
DOI: https://doi.org/10.2991/978-94-6239-148-2_42
Published:
Publisher Name: Atlantis Press, Paris
Print ISBN: 978-94-6239-147-5
Online ISBN: 978-94-6239-148-2
eBook Packages: Business and ManagementBusiness and Management (R0)