An Economic Order Quantity Under Joint Replenishment Policy to Supply Expensive Imported Raw Materials with Payment in Advance

Taleizadeh, Ata Allah; Moghadasi, H.; Niaki, Seyed Taghi Akhavan; Eftekhari, A R

doi:10.3923/jas.2008.4263.4273

Cited by 59 publications

(3 citation statements)

References 4 publications

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“…Tsao and Sheen (2007) developed the inventory models to incorporate the purchase costs that were dependent upon time and lot size for multiple items under the permissible delay of payments. Taleizadeh et al (2008) used hybrid harmony materials. Tsao (2009) studied the impact of credit period and sales learning curve to determine the retailer's optimal promotional effort for multiple items under joint replenishment; and concluded that both the retailer and the supplier can earn a higher profit under a centralized decision model in the search algorithm to solve the EOQ model with advance payments done for multiple and high price raw contrast to that under the de-centralized decision model.…”

Section: Literature Reviewmentioning

confidence: 99%

Inventory Replenishment Policies for Two Successive Generations of Technology Products Under Permissible Delay in Payments

Nagpal

Chanda

Seth

et al. 2022

International Journal of Information Systems and Supply Chain Management

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In this age of digitalization, when every industry is undergoing technological disruption, there is a big role of digital gadgets and technology products. A key feature of these digital gadgets is the short length of the product life cycle, since the newer and more advanced generations of technologies are developed regularly to replace the earlier conventional technologies. The traditional EOQ models that assume a constant demand cannot be used here. This research paper formulates an inventory optimization model for the multi-generational products under the trade credits and the credit-linked and innovation diffusion dependent demand. The study also performs a numerical illustration of the proposed model, and establishes important dynamics among the key variables. It also performs the sensitivity analysis with the cost of credit and the trade credit period. The paper concludes with the managerial implications for the inventory practitioners and the possible areas of extension for this research in the future.

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Section: Literature Reviewmentioning

confidence: 99%

Inventory Replenishment Policies for Two Successive Generations of Technology Products Under Permissible Delay in Payments

Nagpal

Chanda

Seth

et al. 2022

International Journal of Information Systems and Supply Chain Management

View full text Add to dashboard Cite

show abstract

“…Taleizadeh [29] developed an EOQ model for a deteriorating product with multiple advance payment in the system. Taleizadeh et al [30] developed an EOQ model to purchase expensive raw materials with advance payment and without shortages. Further, Wu et al [40] studied an inventory model for materials with expiration date when the seller asks for advanced payments.…”

Section: Introductionmentioning

confidence: 99%

An optimal ordering policy for a visitor-based purchasing system with stochastic delivery time and partial prepayment for profit maximization

2022

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The classical inventory control policies assume that orders are paid for at the time of their receipts, but in practice, suppliers may require retailers to pay a fraction of the purchasing cost in advance, and sometimes allow them to pay this cost in several prepayments during a predetermined period. Planning inventory replenishments and prepayments become challenging when decisions must be made under uncertainty, especially when delivery time is stochastic, and shortages may occur. This paper develops an inventory control model in a purchasing system in which a visitor sells the product of a manufacturer, and a buyer receives call from the visitor to make an order and items arrives at stochastic time. Both partial prepayments and partial backordering are assumed in the model. The main aim of the paper is to determine the optimal level of inventory of the buyer such that his total profit is maximized. A mathematical model with a general probability distribution for lead time is developed and globally optimal solutions are derived for the model. The applicability of the model is discussed through two special cases for uniform and exponential probability distributions. The results are supportive of the proposed ideas and they reflect an efficient approach.

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“…They also affirmed that the model could be easily extended to solve other EOQ problems, such as requirements for the revenue level, safety stock level and/or backorder level. Taleizadeh et al (2011) extended the work of Taleizadeh et al (2008) and solved an uncertain EOQ problem and, like Lam and Wong (1996), also applied a fuzzy mathematical programming in which an incremental discount scheme was used. The considered constraints of the problem were space, budget and the number of orders per year.…”

Section: Introductionmentioning

confidence: 99%

A multiproduct economic order quantity model with simulated annealing application

Pereira

Costa

2017

JM2

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Purpose This paper aims to present a set of five models for the economic order quantity problem. Four models solve problems for a single product: incremental discounts with or without backorders and all-unit discounts with or without backorders, and the last model solves problems for the multiproduct case. Design/methodology/approach A basic integer non-linear model with binary variables is presented, and its flexible structure allows for all five models to be utilised with minor modifications for adaptation to individual situations. The multiproduct model takes into consideration the work of Chopra and Meindl (2012), who studied two types of product aggregations: full and adaptive. To find optimal or near-optimal solutions for the multiproduct case, the authors propose a simulated annealing metaheuristic application. Numerical examples are presented to improve the comprehension of each model, and the authors also present the efficiency of the simulated annealing algorithm through an example that aggregates 50 products, each one with different discount schemes and some allowing backorders. Findings Our model proved to be efficient at finding optimal or near optimal solutions even when confronted with mathematical complexities such as the allowance of backorders and incremental discounts. Originality/value Finally our model can process a mix of products with different discount schemes at the same time, and the simulated annealing metaheuristics could find optimal or near optimal solutions with very few iterations.

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An Economic Order Quantity Under Joint Replenishment Policy to Supply Expensive Imported Raw Materials with Payment in Advance

Cited by 59 publications

References 4 publications

Inventory Replenishment Policies for Two Successive Generations of Technology Products Under Permissible Delay in Payments

Inventory Replenishment Policies for Two Successive Generations of Technology Products Under Permissible Delay in Payments

An optimal ordering policy for a visitor-based purchasing system with stochastic delivery time and partial prepayment for profit maximization

A multiproduct economic order quantity model with simulated annealing application

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