Retailer's pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments

Hwang, Hark; Shinn, Seong Whan

doi:10.1016/s0305-0548(96)00069-x

Cited by 316 publications

(100 citation statements)

References 15 publications

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“…Jamal et al (1997) incorporated shortages to minimize total cost per unit time of an inventory system. Hwang and Shinn (1997) analyzed the effect of credit period on purchase quantity under price-sensitive demand. Here, the selling price and cycle time are decision variables which maximize the total profit per unit time.…”

Section: Introductionmentioning

confidence: 99%

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Shah¹

2017

10.5267/j.uscm

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The player uses credit financing to perform profitable business. We analyze an economic order quantity model in which items have a fixed lifetime and deteriorate over time. The supplier offers the retailer a full credit period whenever the retailer orders more than or equal to a prespecified quantity. If the retailer orders less than pre-specified order quantity, then the retailer will do partial payment to the supplier and avail of delay in payments for the remaining outstanding amount. The demand is price-sensitive. The retailer's profit is maximized by setting appropriate retail price and replenishment time. The algorithm is developed to choose the best policy for the decision maker from the number of alternatives. Numerical data is used to validate the theoretical developments. Managerial insights are discussed. It is observed that for a given units to qualify for avail of partial credit period, increase in ordering cost decreases profit of the retailer. The increase in rate of the purchase cost to avail of delay payment suggests that to have a more profit, retailer should deplete stock before the allowable credit period.Growing Science Ltd. All rights reserved. 7

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Section: Introductionmentioning

confidence: 99%

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Shah¹

2017

10.5267/j.uscm

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“…Balkhi and Benkherouf (1996a, b) investigated the optimal replenishment schedule for production lot size model with deteriorating items. Hwang and Shinn (1997) investigated a inventory replenishment system for deteriorating items under the condition of permissible delay in payments.…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

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

Rajan¹,

Uthayakumar

2017

J Ind Eng Int

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In this paper we develop an economic order quantity model to investigate the optimal replenishment policies for instantaneous deteriorating items under inflation and trade credit. Demand rate is a linear function of selling price and decreases negative exponentially with time over a finite planning horizon. Shortages are allowed and partially backlogged. Under these conditions, we model the retailer's inventory system as a profit maximization problem to determine the optimal selling price, optimal order quantity and optimal replenishment time. An easy-to-use algorithm is developed to determine the optimal replenishment policies for the retailer. We also provide optimal present value of profit when shortages are completely backlogged as a special case. Numerical examples are presented to illustrate the algorithm provided to obtain optimal profit. And we also obtain managerial implications from numerical examples to substantiate our model. The results show that there is an improvement in total profit from complete backlogging rather than the items being partially backlogged.

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“…The effect of the trade credit on the optimal inventory policy is examined by several researchers like Bregman (1993;Chapman and Ward, 1988;Chapman, 1987: Daellenbach, 1986;Chapman et al, 1985;Kingsman, 1983;Davis and Gaither, 1985;Haley and Higgins, 1973). Hwang and Shinn (1997) developed the problem of determining the retailer's optimal lot-size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is represented by consultant price elasticity function. Goyal (1985) developed an inventory model under permissible delay in payments.…”

Section: Introductionmentioning

confidence: 99%

Economic Order Quantity with Linearly Time Dependent Demand Rate and Shortages

Tripathi¹,

Singh²,

Mishra³

2015

Journal of Mathematics and Statistics

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This paper presents an inventory model with linearly time dependent rate and shortages under trade credits. We show that the total cost per unit is convex function of time. Some properties have also been discussed based an optimal solution. The results are discussed with the help of numerical examples. Sensitivity analyses with a variety of numerical results showing the effect of model parameters on key performance measures are demonstrated. Mathematica 7 software is used for finding numerical solutions.

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Retailer's pricing and lot sizing policy for exponentially deteriorating products under the condition of permissible delay in payments

Cited by 316 publications

References 15 publications

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

Retailer’s optimal policies for deteriorating items with a fixed lifetime under order-linked conditional trade credit

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

Economic Order Quantity with Linearly Time Dependent Demand Rate and Shortages

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