Optimal strategy of deteriorating items with capacity constraints under two-levels of trade credit policy

Liao, Jui‐Jung; Huang, Kuo-Nan; Ting, Pin‐Shou

doi:10.1016/j.amc.2014.01.077

Cited by 24 publications

(21 citation statements)

References 37 publications

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“…Currently, Sarkar et al (2014) established an integrated inventory model with lead time, defective units, and delay in payments. Likewise, Liao et al (2014) derived optimal strategy for deteriorating items with capacity constraints ACCEPTED MANUSCRIPT A C C E P T E D M A N U S C R I P T 3 under two-level trade credit. In all articles described above, the EOQ/EPQ models with trade credit financing were studied only from the perspective of the buyer.…”

Section: Introductionmentioning

confidence: 99%

Inventory and credit decisions for time-varying deteriorating items with up-stream and down-stream trade credit financing by discounted cash flow analysis

Chen

Teng

2015

European Journal of Operational Research

102

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Section: Introductionmentioning

confidence: 99%

Inventory and credit decisions for time-varying deteriorating items with up-stream and down-stream trade credit financing by discounted cash flow analysis

Chen

Teng

2015

European Journal of Operational Research

102

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“…Liang and Zhou provided a two‐warehouse inventory model for deteriorating items under conditionally permissible delay in payment. Liao et al studied lot‐sizing decisions for deteriorating items with capacity constraints under different trade credit policies such as (for example) an order‐size‐dependent trade credit policy. Jana et al considered a two‐warehouse inventory model for deteriorating items and stock dependent demand under conditionally permissible delay in payment in imprecise environment.…”

Section: Introductionmentioning

confidence: 99%

Retailer's optimal ordering policy in the EOQ model with imperfect‐quality items under limited storage capacity and permissible delay

Liao

Huang

Chung

et al. 2018

Math Methods in App Sciences

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With a view to reducing inventory and increase sales, a supplier frequently offers its buyers a permissible delay in payment to attract new retailers for bulk purchase, and so extra storage spaces are needed for the buyers. Moreover, in a real environment, some defective items are produced because not only the production processes but also the inspection processes are not perfect, thereby generating defects then resulting in extra costs. Keeping these facts in mind, this article proposes a profit‐maximizing economic order quantity model that incorporates both imperfect production quality and permissible delay in payments in the case when the own warehouse with limited capacity is not sufficient to store the ordered quantity and, therefore, a rented warehouse is needed to store the excess units over the capacity of the owned warehouse. Mathematical model and solution procedures are developed with major insight into its functional characteristics. Numerical examples and sensitivity analysis are provided to illustrate and analyze the model performances. It is observed that our model has significant impacts on the optimal lot size and the optimal profit of the mathematical model, which is considered in this article.

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“…Ouyang et al [12] investigated optimal replenishment decisions under trade credit policy with two levels depending on the size of the order. Lin et al [8] and Liao et al [7] considered the provision of trade credit from suppliers to retailers as well as from retailers to end-customers. Tsao [15] developed a piecewise nonlinear model for a production system under maintenance, trade credit, and limited warehouse space.…”

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confidence: 99%

Ordering policy for non-instantaneously deteriorating products under price adjustment and trade credits

Tsao¹

2017

Journal of Industrial &Amp; Management Optimization

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Non-instantaneously deteriorating products retain their quality for a certain period before beginning to deteriorate. Retailers commonly adjust their retail prices when products shift from a non-deteriorating state to a deteriorating state in order to stimulate demand. It is essential to consider this price adjustment for inventory models of non-instantaneously deteriorating products under trade credit, due to the fact that the calculation of earned interest is based on the retail price. This paper considers the problem of ordering non-instantaneously deteriorating products under price adjustment and trade credit. Our objective was to determine the optimal replenishment cycle time while minimizing total costs. The problem is formulated as three piecewise nonlinear functions, which are solved through optimization. Numerical simulation is used to illustrate the solution procedures and discuss how system parameters influence inventory decisions and total cost. We also show that a policy of price adjustment is superior to that of fixed pricing with regard to profit maximization.2010 Mathematics Subject Classification. Primary: 58F15, 58F17; Secondary: 53C35.

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Optimal strategy of deteriorating items with capacity constraints under two-levels of trade credit policy

Cited by 24 publications

References 37 publications

Inventory and credit decisions for time-varying deteriorating items with up-stream and down-stream trade credit financing by discounted cash flow analysis

Inventory and credit decisions for time-varying deteriorating items with up-stream and down-stream trade credit financing by discounted cash flow analysis

Retailer's optimal ordering policy in the EOQ model with imperfect‐quality items under limited storage capacity and permissible delay

Ordering policy for non-instantaneously deteriorating products under price adjustment and trade credits

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