Comments on the EOQ model for deteriorating items with conditional trade credit linked to order quantity in the supply chain management

Pin-Shou Ting

European Journal of Operational Research, 2015, vol. 246, issue 1, 108-118

Abstract: Ouyang et al. (2009) consider an economic order quantity (EOQ) model for deteriorating items with a partially permissible delay in payments linked to order quantity. Basically, their inventory model is practical, but there are some defects from the logical viewpoints of mathematics. In this paper, the functional behaviors of the annual total relevant costs are explored by rigorous methods of mathematics. A complete solution procedure is also developed to make up for the shortcomings of Ouyang et al. (2009). In numerical examples, it is proved that the new solution procedure could avoid making wrong decisions and causing cost penalties.

Keywords: Inventory; EOQ; Trade credit; Partially permissible delay in payments; Deteriorating items (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221715003665
Full text for ScienceDirect subscribers only

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:eee:ejores:v:246:y:2015:i:1:p:108-118

DOI: 10.1016/j.ejor.2015.04.046

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().