The EOQ Model with Finite Replenishment Rate under Trade Credit Period Depending on the Order Quantity
Abstract
The aim of this study is to determine EOQ model for finding the optimal order quantity of retailer’s inventory system with finite replenishment rate under trade credit period depending on the order quantity. For determining this EOQ model that gives a minimum total cost per unit time, the algebraic method is formulated function of total cost per unit time to be completing the square form of the order quantity. In addition, theoretical and numerical results under trade credit period depending on the order quantity are shown that the total cost per unit time varies inversely with trade credit period, that is, a long trade credit period gives a minimum total cost per unit. Keywords :EOQ model, finite replenishment rate, trade credit periodReferences
Goyal, S. K. (1985). Economic order quantity under conditions of permissible delay in payments. Journal of the Operational Research Society, 36(4), 335-338.
Grubbström, R. W. (1996). Material Requirements Planning and Manufacturing Resource Planning. International Encyclopedia of Business and Management. Routledge, London.
Teerapabolarn, K., & Pomsuk, W. (2013). The EOQ model with continuous replenishment rate and price increases derived algebraically. Srinakharinwirot Science Journal, 29(2), 43-58. (in Thai)
Teerapabolarn, K., & Thornsri, N. (2014). Determination of the EOQ model with special sales price by algebraic method. Srinakharinwirot Science Journal, 30(1), 193-207. (in Thai)
Teng, J. T. (2002). On the economic order quantity under conditions of permissible delay in payments. Journal of the Operational Research Society, 53(8), 915-918.
Tu, Y. C., Hsu, K. H., & Huang, Y. F. (2008). Retailer’s economic order quantity under trade credit period depending on the order quantity without calculus. Journal of Applied Sciences, 8(15), 2785-2787.
Grubbström, R. W. (1996). Material Requirements Planning and Manufacturing Resource Planning. International Encyclopedia of Business and Management. Routledge, London.
Teerapabolarn, K., & Pomsuk, W. (2013). The EOQ model with continuous replenishment rate and price increases derived algebraically. Srinakharinwirot Science Journal, 29(2), 43-58. (in Thai)
Teerapabolarn, K., & Thornsri, N. (2014). Determination of the EOQ model with special sales price by algebraic method. Srinakharinwirot Science Journal, 30(1), 193-207. (in Thai)
Teng, J. T. (2002). On the economic order quantity under conditions of permissible delay in payments. Journal of the Operational Research Society, 53(8), 915-918.
Tu, Y. C., Hsu, K. H., & Huang, Y. F. (2008). Retailer’s economic order quantity under trade credit period depending on the order quantity without calculus. Journal of Applied Sciences, 8(15), 2785-2787.
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Published
2017-09-07
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Research Article
