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Analysis of Economic Replenishment Policy for Exponentially Deteriorating Products under Trade Credit Depending on the Amount of Purchase  

Shinn, Seong-Whan (Department ofIndustrial Engineering, Halla University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.28, no.3, 2002 , pp. 232-239 More about this Journal
Abstract
This paper analyzes how a buyer can determine the economic replenishment policy when the supplier allows delay in payments for an order of a product. For the analysis, it is assumed that the length of credit period is a function of the buyer's amount of purchase, and inventory is depleted not only by buyer's demand but also by deterioration. Investigation of the properties of the model developed allows us to develop an algorithm whose validity is illustrated using an example problem.
Keywords
inventory; EOQ; deterioration; trade credit; length of credit period;
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