An ordering policy for deteriorating items with allowable shortage and permissible delay in payment

Jamal, A. M. M.; Sarker, B R; Wang, S

doi:10.1038/sj.jors.2600428

Cited by 30 publications

(19 citation statements)

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“…This arrangement comes out to be very advantageous to the customer as he may delay the payment till the end of the permissible delay period. Jamal et al (1997) further generalised the model to allow for shortages and make it more applicable in real world. Thus, it makes economic sense for the customer to delay the payment of the replenishment account up to the last day of the settlement period allowed by the supplier or the producer.…”

Section: Introductionmentioning

confidence: 99%

A deterministic two warehouse inventory model for deteriorating items with stock-dependent demand and shortages under the conditions of permissible delay

Singh

Kumari

Kumar

2011

IJMMNO

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In this paper, a deterministic inventory model for deteriorating items with two warehouses and shortages is developed. It is observed that in supermarkets, the demand rate is usually influenced by the amount of the stock level, i.e., the demand rate may go up or down with the on-hand inventory level. Influenced by this, we develop a model where the demand is dependent on the present stock level. Trade credit is provided to the customer to attract them and boost up the demand. A rented warehouse (RW) is used when the ordering quantity exceeds the limited capacity of the own warehouse. Due to different storage conditions, deterioration rate in two warehouses may be different. In addition, shortages are neither completely backlogged nor completely lost assuming the backlogging rate to the inversely proportional to the waiting time for the next replenishment. The associated cost minimisation is illustrated by numerical example and also its sensitivity analysis is carried out by using Mathematica-5.2 for the feasibility and applicability of our model. Keywords:two-warehouse inventory model; shortage; stock-dependent demand rate; time-dependent partial backlogging rate; permissible delay in payments. S.R. Singh et al.Reference to this paper should be made as follows: Singh, S.R., Kumari, R. and Kumar, N. (2011) 'A deterministic two warehouse inventory model for deteriorating items with stock-dependent demand and shortages under the conditions of permissible delay', Int.

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Section: Introductionmentioning

confidence: 99%

A deterministic two warehouse inventory model for deteriorating items with stock-dependent demand and shortages under the conditions of permissible delay

Singh

Kumari

Kumar

2011

IJMMNO

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“…Beyond this period, interest is charged. Jamal et al (1997) [21] extended Aggarwal and Jaggi's (1995) [1] model by allowing shortages. Chung (1998) [6] then developed an alternative approach to the problem.…”

Section: Introductionmentioning

confidence: 99%

Optimal strategy for an EOQ model with noninstantaneous receipt and exponentially deteriorating items under permissible delay in payments

Mahata¹

2011

International Journal of Management Science and Engineering Man

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This paper explores an inventory system with noninstantaneous receipt for deteriorating items under conditions of permissible delay in payments. The noninstantaneous receipt model for deteriorating items under trade credit is newly introduced. The purpose of this paper is to determine the optimal replenishment policies of an inventory model for deteriorating items under conditions of noninstantaneous receipt and permissible delay in payments. We present an easy analytical closed-form solution to find the optimal order quantity, order cycle and order receipt period so that the total relevant cost per unit time is minimized. Finally, through numerical examples, a sensitivity analysis shows the influence of the key model parameters.

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“…Shah and Shah (1992) developed stochastic inventory model under the scenario of permissible credit period. Jamal et al (1997) developed inventory model to allow for shortages under the permissible delay in payments. Shah (1997) developed a probabilistic over-level system with lead time when delay in payments is permissible.…”

Section: Introductionmentioning

confidence: 99%

An Eoq Model for Progressive Payment Scheme Under DCF Approach

Soni

Gor

Shah

2006

Asia Pac. J. Oper. Res.

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An attempt is made to formulate optimal ordering policies for the retailer when the supplier offers progressive credit periods to settle the account. We define progressive credit periods as follows: If the retailer settles the outstanding amount by M , the supplier does not charge any interest. If the retailer pays after M but before N (M < N), then the supplier charges the retailer on the un-paid balance at the rate Ic 1 . If the retailer settles the account after N , then he will have to pay an interest rate of Ic 2 (Ic 2 > Ic 1 ). The objective function to be optimized is considered as present value of all future cashout-flows. An algorithm is given to find the flow of optimal ordering policy. Analytic proofs are discussed to study the effect of various parameters on an objective function.Keywords: EOQ; progressive credit period; discounted-cash-flow (DCF) approach. * Corresponding author. 509 Asia Pac. J. Oper. Res. 2006.23:509-524. Downloaded from www.worldscientific.com by INDIANA UNIVERSITY @ BLOOMINGTON on 02/05/15. For personal use only. Asia Pac. J. Oper. Res. 2006.23:509-524. Downloaded from www.worldscientific.com by INDIANA UNIVERSITY @ BLOOMINGTON on 02/05/15. For personal use only.

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An ordering policy for deteriorating items with allowable shortage and permissible delay in payment

Cited by 30 publications

References 0 publications

A deterministic two warehouse inventory model for deteriorating items with stock-dependent demand and shortages under the conditions of permissible delay

A deterministic two warehouse inventory model for deteriorating items with stock-dependent demand and shortages under the conditions of permissible delay

Optimal strategy for an EOQ model with noninstantaneous receipt and exponentially deteriorating items under permissible delay in payments

An Eoq Model for Progressive Payment Scheme Under DCF Approach

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