The Optimal Inventory Policy for Reusable Items with Random Planning Horizon Considering Present Value

Su, Shou-Mei; Lin, Shy‐Der; Chang, Li-Fen

doi:10.4236/am.2014.52030

Cited by 6 publications

(3 citation statements)

References 11 publications

(16 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, the supplier provision of raw materials is affected by many factors such as the sale date and weather, thus affecting the price fluctuation of raw materials. Therefore, [3] modified the EPQ model to consider the holding costs of raw materials, and [4] [5] subsequently incorporated raw materials into EPQ model. [6] established an EOQ model under the condition of permissible delay.…”

Section: Introductionmentioning

confidence: 99%

EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity

Yen¹,

Lin²,

Lee³

2019

OALib

Self Cite

View full text Add to dashboard Cite

The economic production quantity model is widely used as a decision making tool. However, climate change and energy supply instability have raised the transport costs of raw materials, thereby affecting production costs. Therefore, this paper presents a new model that considers the holding costs of raw materials under conditions of two-level trade credit and limited storage capacity. Four theorems are developed to characterize the optimal solutions according to a cost-minimization strategy. Finally, a sensitivity analysis is executed to investigate the effects of the various parameters on ordering policies and the annual total relevant costs.

show abstract

Section: Introductionmentioning

confidence: 99%

EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity

Yen¹,

Lin²,

Lee³

2019

OALib

Self Cite

View full text Add to dashboard Cite

show abstract

“…Consequently, we should not only simply use the ordering cost to roughly calculate the total relevant cost, but also consider the holding cost of raw materials accurately to calculate. [2] modified the EPQ model to consider the holding cost of raw materials first, [6] and [7] have further discussion with the holding cost of raw materials. [8] established a standard EOQ model for non-deteriorating items under the condition of permissible delay.…”

Section: Introductionmentioning

confidence: 99%

Optimal Economic Production Quantity Policies Considering the Holding Cost of Deteriorating Raw Materials under Two-Level Trade Credit and Limited Storage Capacity

Yen¹,

Lin²,

Lee³

2019

OALib

Self Cite

View full text Add to dashboard Cite

The traditional economic production quantity (EPQ) model assumes that raw materials are supplied timely. But during the production and transport process of raw materials could change the holding cost of raw materials, therefore, they should be considered in the total relevant cost. [1] combined [2]'s concept of holding cost of raw materials and [3]'s two-level trade credit and limited storage capacity model to develop innovative and detailed EPQ model that consider the holding cost of non-deteriorating raw materials. It's closer to the real world. However, in reality, most of the raw materials are deteriorating; it also needs to be considered. Therefore, this research extends [1]'s model to consider the holding cost of deteriorating raw materials. We use cost minimization to develop the total relevant cost and determine the optimal cycle time by four theorems. Finally, we use sensitivity analyses to investigate the effects of the parameters on ordering policies.

show abstract

“…Das et al (2012) developed a two-warehouse production model for deteriorating inventory items with stock dependent demand under inflation over a random planning horizon. Su et al (2014) derived the optimal inventory policy for reusable items with random planning horizon where he considered present value of money. Singh and Singh (2015) discussed progressive trade credit policy in a supply chain under inflationary and fuzzy environment.…”

Section: Introductionmentioning

confidence: 99%

Supply Chain Model with Two Storage Facility for Stock Dependent Demand Incorporating Learning and Inflationary Effect under Crisp and Fuzzy Environment

Singh

2017

International Journal of Fuzzy System Applications

View full text Add to dashboard Cite

In this paper, a supply chain model with power form stock-dependent demand rate is developed, incorporating the effect of learning and inflationary environment. In order to bring their research closer to reality, all the cost parameters involved in the model are considered fuzzy in nature. The demand rate is assumed to be a polynomial form of current inventory level in Own-warehouse. To display the items, retailer has one warehouse of finite capacity, treated as own warehouse (OW) and may hire another warehouse of large capacity, treated as rented warehouse (RW) to storage the excess inventory. Learning effect is incorporated on retailer's selling price, purchasing cost, part of holding cost, deterioration cost and ordering cost. Proposed model is illustrated with some numerical example along with sensitivity analysis of parameters.

show abstract

The Optimal Inventory Policy for Reusable Items with Random Planning Horizon Considering Present Value

Cited by 6 publications

References 11 publications

EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity

EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity

Optimal Economic Production Quantity Policies Considering the Holding Cost of Deteriorating Raw Materials under Two-Level Trade Credit and Limited Storage Capacity

Supply Chain Model with Two Storage Facility for Stock Dependent Demand Incorporating Learning and Inflationary Effect under Crisp and Fuzzy Environment

Contact Info

Product

Resources

About