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    Please use this identifier to cite or link to this item: http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/74957

    Title: The EOQ with defective items and partially permissible delay in payments linked to order quantity derived algebraically
    Authors: Ouyang, Liang-yuh;Chang, Chun-tao;Shum, Philip
    Contributors: 淡江大學管理科學學系
    Keywords: Inventory;EOQ;Defective items;Permissible delay in payment;Arithmetic-geometric mean inequality
    Date: 2012-02
    Issue Date: 2012-02-22 11:17:17 (UTC+8)
    Publisher: Heidelberg: Springer
    Abstract: Most researchers established their inventory lot-size models under trade credit financing by assuming that the supplier offers the retailer fully permissible delay in payments and the products received are all non-defective. However, in the real business environment, it often can be observed that the supplier offers the retailer a fully permissible delay in payments only when the order quantity is greater than or equal to the predetermined quantity Q d . In addition, an arriving order lot usually contains some defective items due to imperfect production processes or other factors. To capture this reality, the paper extends Huang (2007) economic order quantity (EOQ) model with partially permissible delay in payments to consider defective items. We formulate the proposed problem as a profit maximization EOQ model in which the replenishment cycle time is the decision variable. Then we use the arithmetic-geometric mean inequality approach to determine the optimal solution under various situations. An algorithm to obtain the optimal solution is also provided. Finally, the numerical examples and sensitivity analysis are given to illustrate the results.
    Relation: Central European Journal of Operations Research 20(1), pp.141-160
    DOI: 10.1007/s10100-010-0160-9
    Appears in Collections:[管理科學學系暨研究所] 期刊論文
    [統計學系暨研究所] 期刊論文

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