An EOQ model with partial delayed payment and partial backordering

Ata Allah Taleizadeh, David W. Pentico, Mohammad Saeed Jabalameli and Mirbahador Aryanezhad

Omega, 2013, vol. 41, issue 2, 354-368

Abstract: In many transactions concerning selling and buying, a specified delay of payment is offered or accepted by the seller. This can be regarded as a kind of discount and has potential consequences for the order size. These kinds of effects are not explicitly incorporated in the classical formulas for economic order quantities (EOQ). In this research we consider an EOQ problem under partial delayed payment. A fraction of the purchasing cost must be paid at the beginning of the period and the remaining amount can be paid later. Shortages are permitted and occur as a combination of backorders and lost sales. The aim of this paper is to determine the order and shortage quantities.

Keywords: Inventory control; EOQ; Partial delayed payment; Partial backordering (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305048312000825
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:jomega:v:41:y:2013:i:2:p:354-368

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2012.03.008

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().