 An EOQ model for retailers partial permissible delay in payment linked to order quantity with shortagesVandana, and B.K. Sharma Mathematics and Computers in Simulation (MATCOM), 2016, vol. 125, issue C, 99-112 Abstract: Living in the business world, maximizing owner’s happiness or getting paid by the sales of goods or services on an open account at some reasonable profit is the main purpose of any business. The credit functions play a vital role within the organization. In this paper, we develop an inventory model for retailers partial permissible delay-in-payment linked to order quantity with shortage, which is partial backlogged. Here, we consider two different cases, i.e. in first, the trade-credit period (M) is greater than or equal to the time interval tw, that w units are depleted to zero due to demand; and later, the trade-credit period (M) is less than the time interval tw. The principle objective of the introduced model is to minimize the total inventory cost by finding an optimal replenishment policy. Required theorems are provided to verify the optimal solutions. Various numerical examples and managerial implications are discussed to check and substantiate the intransigent results. Keywords: Inventory model; EOQ model; Partial backlogging; Partial trade-credit (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:matcom:v:125:y:2016:i:c:p:99-112 DOI: 10.1016/j.matcom.2015.11.008 Access Statistics for this article Mathematics and Computers in Simulation (MATCOM) is currently edited by Robert Beauwens More articles in Mathematics and Computers in Simulation (MATCOM) from Elsevier |
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