Optimal ordering policy for stock-dependent demand under progressive payment scheme

Soni, Hardik; Shah, Nita H.

doi:10.1016/j.ejor.2006.10.048

Cited by 113 publications

(65 citation statements)

References 39 publications

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“…Refer review articles by Chang et al (2008), Shah et al (2010) and Molamohamadi et al (2014). Soni and Shah (2008) formulated inventory model for determining optimal order quantity when demand is stock -dependent. They considered a scenario of two successive credit periods for settling the account against the dues.…”

Section: Introductionmentioning

confidence: 99%

“…They considered a scenario of two successive credit periods for settling the account against the dues. Teng et al (2011) generalized Sony andShah (2008)'s model by assuming positive inventory at the end of the cycle time when inventory system is constrained with a floor space and items deteriorate exponentially. They discussed retailer's policies when the supplier offers a progressive permissible delay in payments.…”

Section: Introductionmentioning

confidence: 99%

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Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Shah¹

2017

10.5267/j.uscm

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The player uses credit financing to perform profitable business. We analyze an economic order quantity model in which items have a fixed lifetime and deteriorate over time. The supplier offers the retailer a full credit period whenever the retailer orders more than or equal to a prespecified quantity. If the retailer orders less than pre-specified order quantity, then the retailer will do partial payment to the supplier and avail of delay in payments for the remaining outstanding amount. The demand is price-sensitive. The retailer's profit is maximized by setting appropriate retail price and replenishment time. The algorithm is developed to choose the best policy for the decision maker from the number of alternatives. Numerical data is used to validate the theoretical developments. Managerial insights are discussed. It is observed that for a given units to qualify for avail of partial credit period, increase in ordering cost decreases profit of the retailer. The increase in rate of the purchase cost to avail of delay payment suggests that to have a more profit, retailer should deplete stock before the allowable credit period.Growing Science Ltd. All rights reserved. 7

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Shah¹

2017

10.5267/j.uscm

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“…Teng et al (2005) formulated EOQ model for deteriorating items and non-zero ending inventories. Other related analysis on inventory system with stock-dependent consumption rate have been performed by Soni and Shah (2008), Tripathi (2015Tripathi ( , 2017, Tripathi and Singh (2015), Shah et al (2013) and Wang et al (2014).…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

Optimal lot sizing policy with power demand and composed shortages under trade credits

Shukla

Tripathi

Sang

et al. 2017

IJKMTH

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This paper deals with an optimal ordering policy for non-deteriorating item with power demand under trade credits. The shortages are allowed and combination of backlogged and lost sales. Mathematical model is developed under two different situations, i.e., case 1: the permissible delay period is less than time to finish positive inventory and case 2 trade credit period is greater than or equal to time to finish positive inventory. Numerical examples are provided to illustrate the algorithm and theoretical results. The sensitivity analysis is provided on the optimal solution. The second order approximations are used for exponential terms to find the complexity on the optimal solution.

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“…Since then, a lot of research works have been developed with extensions of this type of model considered by Urban (1992aUrban ( ,1995, Padmanabhan and Vrat (1995), Giri et al (1996), Chang (2004), Pal et al(2004Pal et al( ,2006, Sana and Chaudhury (2004), Mondal et al(2007), etc. Recently, Soni and Shah (2008) proposed an optimal ordering policy for retailer under progressive payment scheme for variable demand dependent on the inventory level. Goyal and Cheng (2009) formulated an ordering-transfer inventory model where demand rate depends on the displayed stock level.…”

Section: Introductionmentioning

confidence: 99%

A deterministic model for deteriorating items with displayed inventory level dependent demand rate incorporating marketing decisions with transportation cost

Bhunia¹,

Shaikh²

2011

IJIEC

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This paper deals with an inventory model, which considers the impact of marketing strategies such as pricing and advertising as well as the displayed inventory level on the demand rate of the system. In addition, the demand rate during the stock-out period differs from that during the stock-in period by a function varied on the waiting time up to the beginning of the next cycle. Shortage are allowed and partially backlogged. Here, the deterioration rate is assumed to follow the Weibull distribution. Considering all these factors with others, different scenarios of the system are investigated. To obtain the solutions of these cases and to illustrate the model, an example is considered. Finally, to study the effects of changes of different parameters of the system, sensitivity analyses have been carried out with respect to the different parameters of the system.

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Optimal ordering policy for stock-dependent demand under progressive payment scheme

Cited by 113 publications

References 39 publications

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Optimal lot sizing policy with power demand and composed shortages under trade credits

A deterministic model for deteriorating items with displayed inventory level dependent demand rate incorporating marketing decisions with transportation cost

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