An economic order quantity model with multiple partial prepayments and partial backordering

Abstract

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.

Designing a capacitated multi-configuration logistics network under disturbances and parameter uncertainty: a real-world case of a drug supply chain

“…The proposed formulation takes into account the operative expenditures of an established DC due to its practical activity surface instead of the presumption that an established DC functions at the uttermost acumen. Some other related paper can be found in Taleizadeh et al (2008Taleizadeh et al ( , 2009Taleizadeh et al ( , 2010aTaleizadeh et al ( , b, 2011Taleizadeh et al ( , 2012Taleizadeh et al ( , 2013aTaleizadeh et al ( , b, 2014, Taleizadeh and Pentico (2013), Taleizadeh (2014), Taleizadeh and Nematollahi (2014) and Taleizadeh and Pentico (2014).…”

Optimal pricing and replenishment policies for instantaneous deteriorating items with backlogging and trade credit under inflation

“…Ahamed et al (2013) developed inventory model with ramp-type demand and partial backlogging. Readers are referred to Taleizadeh et al (2013aTaleizadeh et al ( , 2013b and Taleizadeh (2014) for reviews of various inventory models.…”

Coordinating a Supply Chain with an EOQ Model

“…Salameh and Jaber (2000) developed models on lot sizing when procured items are of imperfect quality and summarized the current body of research that has extended the Salameh and Jaber (2000) EOQ model for imperfect items. Taleizadeh et al (2013a) considered an EOQ problem under partial delayed payment and Taleizadeh et al (2013b) developed EOQ models with multiple prepayments under no shortage, full backordering, and partial backordering. Pentico and Drake (2011) gave a comprehensive review on deterministic models that have been developed over the past 40 years with considerations, such as pricing, perishable, or deteriorating inventory, time-varying or stock-dependent demand, quantity discounts, or multiplewarehouses.…”