Partial linked-to-order delayed payment and life time effects on decaying items ordering

Ata Allah Taleizadeh (), Nadia Pourmohammad-Zia () and Ioannis Konstantaras ()
Additional contact information
Ata Allah Taleizadeh: University of Tehran
Nadia Pourmohammad-Zia: Amirkabir University of Technology
Ioannis Konstantaras: University of Macedonia

Operational Research, 2021, vol. 21, issue 3, No 24, 2077-2099

Abstract: Abstract Trade-credit is an influential implementation in financial transactions. This paper proposes an inventory model for decaying items with lifetime under linked-to-order partial delay in payments. More precisely, the items are gradually deteriorating and also have a known maximum lifetime. The payment scheme is structured as follows: if the order quantity reaches a particular level, fully permissible trade credit is possible, otherwise the partial trade credit is offered. To the best of our knowledge, this is the first research incorporating the “Linked-to-order Trade Credit Financing” scheme for deteriorating items with lifetime. Selling price and purchasing costs are not considered equal and there is no need for the interest charged in stocks to be larger than the interest earned on investment. Theoretical results are developed to obtain the optimum solutions of the problem. The authenticity and pertinence of the model and solution procedure are illustrated through numerical results. Finally, sensitivity analysis and managerial insights are provided.

Keywords: Inventory; Partial trade credit; Linked to order trade credit; Deterioration; Life time; 90B05 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s12351-019-00501-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:operea:v:21:y:2021:i:3:d:10.1007_s12351-019-00501-4

Ordering information: This journal article can be ordered from
https://www.springer ... search/journal/12351

DOI: 10.1007/s12351-019-00501-4

Access Statistics for this article

Operational Research is currently edited by Nikolaos F. Matsatsinis, John Psarras and Constantin Zopounidis

More articles in Operational Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().