A joint optimal ordering and delivery policy for an integrated supplier–retailer inventory model with trade credit and defective items

Lin, Yu-Jen; Ouyang, Liang–Yuh; Dang, Ya-Fang

doi:10.1016/j.amc.2012.01.016

Cited by 46 publications

(23 citation statements)

References 41 publications

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“…Kreng and Tan [36] proposed a production model for a lot size inventory system with two-level trade credits and defective items that include both imperfect items and scrap items. Other articles in this direction were contributed by Chen and Kang [10], Jaggi et al [31], Su [50], Lin et al [38] and their references. Recently, Ouyang and Chang [42] developed an EPQ model with imperfect items under permissible delay in payments and complete backlogging that focused on the reworking of defective items.…”

Section: Literature Reviewmentioning

confidence: 95%

An integrated inventory model for a deteriorating item with allowable shortages and credit linked wholesale price

Giri

Sharma

2014

Optim Lett

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This study proposes a single manufacturer, single retailer integrated inventory model that includes deterioration and shortages in the retailer's inventory. The manufacturer's production process is assumed to be imperfect as it produces a certain percentage of defective items. The retailer performs a 100 % screening process immediately on receiving a lot from the manufacturer and returns the detected defective items to the manufacturer in the next delivery. The manufacturer disposes the defective items and incurs a disposal cost. To increase sales, (s)he offers a trade credit to the retailer. The retailer's wholesale price varies linearly with the credit period. The objective is to determine the optimal replenishment cycle time, the time of running out of stock, the length of the credit period and the number of lots from the manufacturer to the retailer so as to maximize the total profit of the integrated system. A solution algorithm is designed and illustrated through numerical examples. Furthermore, a sensitivity analysis is carried out to study the influence of the model-parameters on the optimal solution.

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Section: Literature Reviewmentioning

confidence: 95%

An integrated inventory model for a deteriorating item with allowable shortages and credit linked wholesale price

Giri

Sharma

2014

Optim Lett

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“…For instance, Wal-Mart's trade credit is eight times the amount of capital invested by its shareholders [13]. Lin, Ouyang, and Dang [14] proposed an integrated supplier-retailer inventory model considering trade credit policies and defective items. Zhong and Zhou [15] developed a model to determine the ordering or trade-credit policy of a supply chain.…”

Section: Introductionmentioning

confidence: 99%

An Effective Hybrid Differential Evolution Algorithm Incorporating Simulated Annealing for Joint Replenishment and Delivery Problem with Trade Credit

Zeng¹,

Peng²,

Zhang³

et al. 2016

IJCIS

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In practice, suppliers often provide retailers with forward financing to increase demand or decrease inventory. This paper proposes a new and practical joint replenishment and delivery (JRD) model by considering trade credit. However, because of the complex mathematical properties of JRD, high-quality solutions to the problem have eluded researchers. We design an effective hybrid differential evolution algorithm based on simulated annealing (HDE-SA) that can resolve this non-deterministic polynomial hard problem in a robust and precise way. After determining the suitable parameters by a parameter-tuning test, we verify the performance of the HDE-SA through numerical JRD examples. Compared with the results of other popular evolutionary algorithms, results of randomly generated JRDs indicate that HDE-SA can always obtain slightly lower total costs than differential evolution algorithm (DE) and genetic algorithm (GA) under different situations. Moreover, the convergence rate of the HDE-SA is higher than that of DE and GA. Thus, the proposed HDE-SA is a potential tool for the JRD with trade credit.

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“…Sarkar (2012) found out an EOQ model with delay in payments and time varying deterioration rate. Lin et al (2012) developed a joint optimal ordering and delivery policy for an integrated supplier-retailer inventory model with trade credit and defective items. Guria et al (2012) proposed a two-warehouse EOQ model with two-level delay in payment.…”

Section: Introductionmentioning

confidence: 99%

Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

Palanivel

Uthayakumar

2017

IJOR

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Abstract:In this paper, two-warehouse economic order quantity (EOQ) model for non-instantaneous deteriorating items with permissible delay in payments under the effect of inflation and time value of money is presented in which the demand is considered as a deterministic function of selling price and advertisement cost. Also in this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. This model aids in minimising the total inventory cost by finding the optimal intervals and the optimal order quantity. Furthermore, numerical examples are provided to illustrate the proposed model, sensitivity analysis of the optimal solutions with respect to major parameters is carried out and some managerial inferences are obtained. To his credit, he has published many research articles in the area of inventory management and supply chain in the reputed international journals. Moreover, he is guiding many scholars in the above said areas. Keywords

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A joint optimal ordering and delivery policy for an integrated supplier–retailer inventory model with trade credit and defective items

Cited by 46 publications

References 41 publications

An integrated inventory model for a deteriorating item with allowable shortages and credit linked wholesale price

An integrated inventory model for a deteriorating item with allowable shortages and credit linked wholesale price

An Effective Hybrid Differential Evolution Algorithm Incorporating Simulated Annealing for Joint Replenishment and Delivery Problem with Trade Credit

Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

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