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    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/19774

    Title: An EOQ model for deteriorating items under trade credits
    Authors: Ouyang, Liang-yuh;張春桃;Chang, Chun-tao;Teng, Jinn-tsair
    Contributors: 淡江大學經營決策學系
    Keywords: inventory;cash discount;delay payments;deteriorating items;trade credit
    Date: 2005-06
    Issue Date: 2009-11-30 12:21:32 (UTC+8)
    Publisher: Palgrave Macmillan
    Abstract: n the classical inventory economic order quantity (or EOQ) model, it was assumed that the supplier is paid for the items immediately after the items are received. However, in practices, the supplier may simultaneously offer the customer: (1) a permissible delay in payments to attract new customers and increase sales, and (2) a cash discount to motivate faster payment and reduce credit expenses. In this paper, we provide the optimal policy for the customer to obtain its minimum cost when the supplier offers not only a permissible delay but also a cash discount. We first establish a proper model, and then characterize the optimal solution and provide an easy-to-use algorithm to find the optimal order quantity and replenishment time. Furthermore, we also compare the optimal order quantity under supplier credits to the classical economic order quantity. Finally, several numerical examples are given to illustrate the theoretical results.
    Relation: Journal of the operational research society 56(6), pp.719-726
    DOI: 10.1057/palgrave.jors.2601881
    Appears in Collections:[Department of Management Sciences] Journal Article
    [Graduate Institute & Department of Statistics] Journal Article

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