Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
권호 표지

Analysis of Economic Replenishment Policy for Exponentially Deteriorating Products under Trade Credit Depending on the Amount of Purchase

구매량에 종속적인 외상기간을 고려한 퇴화성 제품의 경제적 주문정책

  • 신성환 (한라대학교 기계공학부 산업공학)
  • Published : 2002.09.30
Download PDF
⟨ Previous Next ⟩

Abstract

This paper analyzes how a buyer can determine the economic replenishment policy when the supplier allows delay in payments for an order of a product. For the analysis, it is assumed that the length of credit period is a function of the buyer's amount of purchase, and inventory is depleted not only by buyer's demand but also by deterioration. Investigation of the properties of the model developed allows us to develop an algorithm whose validity is illustrated using an example problem.

Keywords

References

  1. Chapman, C. B., Ward, S. C., Cooper, D. F. and Page, M. J. (1985), Credit policy and inventory control, Journal of Operational Research Society. 35(12), 1055-1065
  2. Chu, P., Chung, K. J. and Lan, S. P. (1998), Economic order quantity of deteriorating items under permissible delay in payments, Computers & Operations Research, 25(10), 817-824 https://doi.org/10.1016/S0305-0548(98)00006-9
  3. Chung, K. J. (1998), A theorem on the determination of economic order quantity under conditions of permissible delay in payments, Computers & Operations Research, 25(1), 49-52 https://doi.org/10.1016/S0305-0548(97)00041-5
  4. Cohen, M. A. (1977), Joint pricing and ordering policy for exponentially decaying inventory with known demand, Naval Research Logistics Quarterly, 24(2), 257-268 https://doi.org/10.1002/nav.3800240205
  5. Goyal, S. K. (1985), Economic order quantity under conditions of permissible delay in payments, Journal of Operational Research Society, 36(4), 335-338 https://doi.org/10.2307/2582421
  6. Hwang, H. and Shinn, S. W. (1997), Retailer's pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments, Computers & Operations Research. 24(6), 539-547
  7. Jaggi, C. K. and Aggarwal, S. P. (1994), Credit financing in economic ordering policies of deteriorating items, International Journal of Production Economics, 34, 151-155
  8. Kingsman, B. G. (1983), The effect of payment rule on ordering and stock holding in purchasing, Journal of Operational Research Society. 34(11), 1085-1098
  9. Mehta, D. (1968), The formulation of credit policy models, Management Science, 15, B30-B50
  10. Sarker, B. R., Jamal, A. M. M. and Wang, S. (2000), Supply chain models for perishable products under inflation and permissible delay in payment, Computers & Operations Research, 27(1), 59-75 https://doi.org/10.1016/S0305-0548(99)00008-8
  11. Shinn, S. W. and Hwang, H. (2003), Optimal pricing and ordering policies for retailers under order-size-dependent delay in payments, Computers & Operations Research to appear