An EOQ model with partial backordering and advance payments for an evaporating item

Ata Allah Taleizadeh

International Journal of Production Economics, 2014, vol. 155, issue C, 185-193

Abstract: In the classic Economic Order Quantity model the purchasing cost of an order is paid at the time of its receipt. In some cases retailers ask purchasers to pay all or a fraction of the purchasing cost in advance and may allow them to divide the prepayment into several equal-sized parts. In this paper, an economic order quantity model for an evaporating item with partial backordering and partial consecutive prepayments is developed with a real case study of a gasoline station. Real numerical examples illustrate the proposed model and the solution method.

Keywords: Inventory; Economic order quantity; Partial backordering; Consecutive payments; Deterioration (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (45)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:155:y:2014:i:c:p:185-193

DOI: 10.1016/j.ijpe.2014.01.023

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