EOQ Model for Deteriorating Items with Stock-Level-Dependent Demand Rate and Order-Quantity-Dependent Trade Credit

Jie Min, Jian Ou, Yuan-Guang Zhong and Xin-Bao Liu

Mathematical Problems in Engineering, 2014, vol. 2014, 1-14

Abstract:

This paper develops a generalized inventory model for exponentially deteriorating items with current-stock-dependent demand rate and permissible delay in payments. In the model, the payment for the item must be made immediately if the order quantity is less than the predetermined quantity; otherwise, a fixed trade credit period is permitted. The maximization of the average profit per unit of time is taken as the inventory system’s objective. The necessary and sufficient conditions and some properties of the optimal solution to the model are developed. Simple solution procedures are proposed to efficiently determine the optimal ordering policies of the considered problem. Numerical example is also presented to illustrate the solution procedures obtained.

Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://downloads.hindawi.com/journals/MPE/2014/962128.pdf (application/pdf)
http://downloads.hindawi.com/journals/MPE/2014/962128.xml (text/xml)

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:hin:jnlmpe:962128

DOI: 10.1155/2014/962128

Access Statistics for this article

More articles in Mathematical Problems in Engineering from Hindawi
Bibliographic data for series maintained by Mohamed Abdelhakeem ().