Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit
In the classical inventory model, it was assumed that the retailer must settle the accounts of the purchased items as soon as they are received. In practice, however, the supplier usually offers a full or partial delay period to the retailer to pay for the amount of the purchasing costs. In the part...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
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AIP Publishing LLC
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/57596/ http://psasir.upm.edu.my/id/eprint/57596/1/Ordering%20policies%20of%20a%20deteriorating%20item%20in%20an%20EOQ%20model%20with%20backorder%20under%20two-level%20partial%20trade%20credit.pdf |
| _version_ | 1848853411278094336 |
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| author | Molamohamadi, Zohreh Arshizadeh, Rahman Ismail, Napsiah |
| author_facet | Molamohamadi, Zohreh Arshizadeh, Rahman Ismail, Napsiah |
| author_sort | Molamohamadi, Zohreh |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | In the classical inventory model, it was assumed that the retailer must settle the accounts of the purchased items as soon as they are received. In practice, however, the supplier usually offers a full or partial delay period to the retailer to pay for the amount of the purchasing costs. In the partial trade credit contract, which is mostly applied to avoid non-payment risks, the retailer must pay for a portion of the purchased goods at the time of ordering and may delay settling the rest until the end of the predefined agreed upon period, so-called credit period. This paper assumes a two-level partial trade credit where both supplier and retailer offer a partial trade credit to their downstream members. The objective here is to determine the retailer’s ordering policy of a deteriorating item by formulating his economic order quantity (EOQ) inventory system with backorder as a cost minimization problem. The sensitivity of the variables on different parameters has been also analyzed by applying numerical examples. |
| first_indexed | 2025-11-15T10:53:33Z |
| format | Conference or Workshop Item |
| id | upm-57596 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:53:33Z |
| publishDate | 2014 |
| publisher | AIP Publishing LLC |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-575962017-10-24T06:26:07Z http://psasir.upm.edu.my/id/eprint/57596/ Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit Molamohamadi, Zohreh Arshizadeh, Rahman Ismail, Napsiah In the classical inventory model, it was assumed that the retailer must settle the accounts of the purchased items as soon as they are received. In practice, however, the supplier usually offers a full or partial delay period to the retailer to pay for the amount of the purchasing costs. In the partial trade credit contract, which is mostly applied to avoid non-payment risks, the retailer must pay for a portion of the purchased goods at the time of ordering and may delay settling the rest until the end of the predefined agreed upon period, so-called credit period. This paper assumes a two-level partial trade credit where both supplier and retailer offer a partial trade credit to their downstream members. The objective here is to determine the retailer’s ordering policy of a deteriorating item by formulating his economic order quantity (EOQ) inventory system with backorder as a cost minimization problem. The sensitivity of the variables on different parameters has been also analyzed by applying numerical examples. AIP Publishing LLC 2014 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/57596/1/Ordering%20policies%20of%20a%20deteriorating%20item%20in%20an%20EOQ%20model%20with%20backorder%20under%20two-level%20partial%20trade%20credit.pdf Molamohamadi, Zohreh and Arshizadeh, Rahman and Ismail, Napsiah (2014) Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit. In: International Conference on Mathematics, Engineering and Industrial Applications 2014 (ICoMEIA 2014), 28-30 May 2014, Penang, Malaysia. (pp. 1-13). 10.1063/1.4915674 |
| spellingShingle | Molamohamadi, Zohreh Arshizadeh, Rahman Ismail, Napsiah Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit |
| title | Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit |
| title_full | Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit |
| title_fullStr | Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit |
| title_full_unstemmed | Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit |
| title_short | Ordering policies of a deteriorating item in an EOQ model with backorder under two-level partial trade credit |
| title_sort | ordering policies of a deteriorating item in an eoq model with backorder under two-level partial trade credit |
| url | http://psasir.upm.edu.my/id/eprint/57596/ http://psasir.upm.edu.my/id/eprint/57596/ http://psasir.upm.edu.my/id/eprint/57596/1/Ordering%20policies%20of%20a%20deteriorating%20item%20in%20an%20EOQ%20model%20with%20backorder%20under%20two-level%20partial%20trade%20credit.pdf |