Manufacturing system with discrete random demand under two level of trade credit finance

Article Sidebar

PDF
Published: Mar 15, 2022
Keywords:
manufacturing system, trade credit, stochastic demand

Main Article Content

Om Prakash
Department of Mathematics, National Institute of Technology Sikkim
Nipa Biswas
Department of Mathematics, National Institute of Technology Sikkim

Abstract

The main purpose of this paper is to investigate a manufacturing inventory model with finite production rate and discrete stochastic demand rate under two level of trade credit policy.
In this trade credit policy, supplier will offer a delay period to the retailer for payment and the retailer also extends the trade credit policy to his/her customer.
We formulate the retailer's inventory system as a cost maximization problem. The optimal replenishment policy of the system can be easily verified with the help of numerical examples.

Article Details

How to Cite
1.
Prakash O, Biswas N. Manufacturing system with discrete random demand under two level of trade credit finance. J. Int. Acad. Phys. Sci. [Internet]. 2022 Mar. 15 [cited 2024 May 17];26(1):79-8. Available from: https://www.iaps.org.in/journal/index.php/journaliaps/article/view/935
Issue
Vol. 26 No. 1 (2022): Table of Content
Section
Articles
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

References

G. Hadley and T. M. Whitin; Analysis of inventory system, Prentice-Hall, Englewood Cliffs N.J., 1963.

S. K. Goyal; Economic order quantity under conditions of permissible delay in payments, Journal of the Operational Research Society, 36 (1985) 335-338.

S. P. Aggarwal and C. K.Jaggi; Ordering policies of deteriorating items under permissible delay in payments, Journal of the Operational Research Society, 46 (1995) 658-662.

C. T. Chang, L. Y. Ouyang and J. T. Teng; An EOQ model for deteriorating items under supplier credits linked to ordering quantity, Applied Mathematical Modelling, 27 (2003) 983-996.

K. J. Chung, J. J. Liao; The optimal ordering policy in a DCF analysis for deteriorating items when trade credit depends on the order quantity, International Journal of Production Economics, 100 (2006) 116-130.

S. W. Shinn, H. P. Hwang, and S. Sung; Joint price and lot size determination under conditions of permissible delay in payments and quantity discounts for freight cost, European Journal of Operational Research, 91 (1996) 528-542.

C. T. Chang; An EOQ model with deteriorating items under inflation when supplier credits linked to order quantity, International Journal of Production Economics, 88 (2004) 307- 316.

A. M. M. Jamal, B. R. Sarker, S. Wang; Optimal payment time for a retailer under permitted delay of payment by the wholesaler, International Journal of Production Economics, 66 (2000) 59-66.

G. C. Mahata; An EPQ-based inventory model for exponentially deteriorating items under retailer partial trade credit policy in supply chain, Expert Systems with Applications, 39 (2012) 3537-3550.

V. B. Kreng, S. J. Tan; Optimal replenishment decision in an EPQ model with defective items under supply chain trade credit policy, Expert Systems with Applications, 38 (2011) 9888-9899.

A. Goswami, G. C. Mahata and O. Prakash; Optimal retailer replenishment decisions in the EPQ model for deteriorating items with two level of trade credit financing, International Journal of Mathematics in Operational Research, 2 (2010) 17-39.

C. K. Huang; An integrated inventory model under conditions of order processing cost reduction and permissible delay in payments, Applied Mathematical Modelling, 34 (2010) 1352-1359.

S. Chand and J. Ward; A note on economic order quantity under conditions of permissible delay in payments, Journal of the Operational Research Society, 38 (1987) 83-84.

K. J. Chung and Y. F. Huang; The optimal cycle time for EPQ inventory model under permissible delay in payments, International Journal of Production Economics, 84 (2003) 307-318.

K. J. Chung and Y. F. Huang; The optimal retailer’s ordering policies for deteriorating items with limited storage capacity under trade credit financing, International Journal of Production Economics, 106 (2007) 127-145.

Y. F. Huang; Optimal retailer’s ordering policies in the EOQ model under trade credit financing, Journal of the Operational Research Society, 54 (2003) 1011-1015.

Y.F. Huang; Optimal retailer’s replenishment decision in the EPQ model under two levels of trade credit policy, European Journal of Operational research, 176 (2007) 1577-1591.

Y. F. Huang and K. H. Hus; An EOQ model under retailer partial trade credit policy in supply chain, International Journal of Production Economics, 112 (2008) 655-664.

J.Wu, L.Y. Ouyang, L.E. Cardenas- Barron, S.K.Goyal; Optimal credit period and lot size for deteriorating items with expiration dates under two-level trade credit financing, European Journal of Operational Research, 237 (2014) 898-908.

A.K.Bhunia, C.K. Jaggi, A.Sharma, R.Sharma; A two-warehouse inventory model for deteriorating items under permissible delay in payment with partial backlogging, Applied Mathematics and Computation, 232 (2014) 1125-1137.

F. Otrodi, R. G. Yaghin and S.A. Torabi; Joint pricing and lot sizing for a perishable item under two-level trade credit with multiple demand classes, Computers & Industrial Engineering, 127 (2019) 761-777.

X.Zou and B.Tian; Retailers optimal ordering and payment strategy unde two-level and flexible two-part trade credit policy, Computers & Industrial Engineering, 142 (2020) 106317.

N. H. Shah and Y. K. Shah; A probabilistic order level system when delay in payments is permissible, Journal of the Korean Operations Research and Management Science Society, 18(1993) 175-183.

N. H. Shah and Y. K. Shah; A discrete-in-time probabilistic inventory model for deteriorating items under conditions of permissible delay in payments, International Journal of Systems Science, 29 (1998) 121-126.

L.N. De, and A. Goswami; Probabilistic EOQ model for deteriorating items under trade credit financing, International Journal of Systems Science, 40 (2009) 335-346.

A. Federguren and P. Zipking; An inventory model with limited production capacity and uncertain demand the average cost criterion, Mathematics of Operational research, 11(2) (1986).

T. Tan, and M. X. Wang; A discrete-in-time deteriorating inventory model with time-varying demand, variable deterioration rate and waiting-time-dependent partial backlogging, International Journal of Systems Science, 44(2013) 1483-1493.

N. Halmay, D. Klabjan, N. Mostagir, J. Orilin and D. S. Levi; A Fully Polynomial Time Approximation Scheme for Single Item Stochastic Inventory Control with Discrete Demand, Mathematics of operational research, 34 (2009) 674-685.

O. Prakash, A.R. Roy, and A. Goswami; Manufacturing inventory model with discrete random machine breakdown and discrete stochastic corrective and preventive repair time, Int. J. Procurement Management, 6 (2013) 394-408.

M. H. Roger; Applying Bayesian methodology with a uniform prior to the single period inventory model, European Journal of Operational Research, 98 (1997) 555-562.