Optimal Economic Ordering Policy with Trade Credit and Discount Cash-Flow Approach

Abstract: In this paper, an inventory model for deteriorating items under two levels of trade credit will be established. The trade credit policy depends on the retailer’s order quantity. When the retailer’s order quantity is greater than or equal to a predetermined quantity, both of the supplier and the retailer are taking trade credit policy; otherwise, the delay in payments is not permitted. Since the same cash amount has different values at different points of time, the discount cash-flow (DCF) is used to analysis the inventory model. The purpose of this paper is to find an optimal ordering policy to minimizing the present value of all future cash-flows cost by using DCF approach. The method to determine the optimal ordering policy efficiently is presented. Some numerical examples are provided to demonstrate the model and sensitivity of some important parameters are illustrated the optimal solutions.

Keywords: two-level trade credit, deteriorating items, order quantity dependent credit, discount cash-flow, EOQ

Author: Hao Jiaqin, Mo Jiangtao, Min Jie

Journal Code: jptkomputergg150186

Artikel Terkait :

Jp Teknik Komputer gg 2015

• Current Ripple Analysis of New Double-Stator AC Drive Systems
• Comparing Performances of Evolutionary Algorithms on the Emission Dispatch and Economic Dispatch Problem
• A Polynomial-based Pairwise Key Pre-distribution and Node Authentication Protocol for Wireless Sensor Networks
• Power Characteristics of Wireless Charging for Sensor Networks in Tunnels
• Influence of Sensor Nodes on the Invulnerability of Tree Network
• An Automatic Calibration Method for Near-infrared Camera in Optical Surgical Navigation
• Design and Implementation of Network Public Opinion Analysis System
• Evaluation of the Modernization of Hydraulic Projects Management Compact-Center-Point Triangular Whitenization Weight Function
• Transmission of Real-time Video Signal with Interference Density and Human Traffic
• Correlation of Student’s Precursor Emotion towards Learning Science Interest using EEG
• The Analysis of Rank Fusion Techniques to Improve Query Relevance
• Recognition of Emotions in Video Clips: The Self-Assessment Manikin Validation
• Automatically generation and evaluation of Stop words list for Chinese Patents
• Service Engineering Based on Service Oriented Architecture Methodology
• Modelling on Tracking Test Condition of Polymer Nanocomposite using Finite Element Simulation
• A Novel Approach to Optimize Cognitive Radio Network Utilization using Cascading Technique
• Classification of Non-Functional Requirements Using Semantic-FSKNN Based ISO/IEC 9126
• Poisson Clustering Process on Hotspot in Peatland Area in Sumatera
• Computing Game and Learning State in Serious Game for Learning
• Double Difference Motion Detection and Its Application for Madura Batik Virtual Fitting Room
• Alternative Technique Reducing Complexity of Maximum Attribute Relation
• High Performance Computing on Cluster and Multicore Architecture
• Control System for Nutrient Solution of Nutrient Film Technique Using Fuzzy Logic
• Measurement of Ultra Wideband Channel Sounding Using Vector Network Analyzer