a b s t r a c tThe classic Economic Order Quantity model assumes that an order is paid for at the time of its receipt. In practice, suppliers may require purchasers to pay a fraction of the order's cost in advance and sometimes allow them to divide the prepayment into multiple equalsized parts to be paid during a fixed lead time. In this paper, an EOQ model with multiple prepayments under three different conditions: (a) no shortage, (b) full backordering and (c) partial backordering, are developed. Numerical examples illustrate the proposed models and solution method.
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