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Kunjen Chung - One of the best experts on this subject based on the ideXlab platform.
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short communication the simplified solution procedures for the optimal replenishment decisions under two levels of trade Credit Policy depending on the order quantity in a supply chain system
Expert Systems With Applications, 2011Co-Authors: Kunjen ChungAbstract:Kreng and Tan [Kreng, V. B. & Tan, S. J. (2010). The optimal replenishment decisions under two levels of trade Credit Policy depending on the order quantity. Expert Systems with Applications 37, 5514-5522] explore the optimal replenishment decisions under two levels of trade Credit Policy depending on the order quantity. Their inventory model is new and interesting. However, this paper indicates that their solution procedures can be improved further. So, the main purpose of this paper is to incorporate and simplify them for Kreng and Tan (2010).
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the optimal retailer s ordering policies for deteriorating items with limited storage capacity under trade Credit financing
International Journal of Production Economics, 2007Co-Authors: Kunjen Chung, Tienshou HuangAbstract:Abstract Under permissible delay in payments, all previously published models implicitly assumed that the supplier would offer the retailer a delay period, but the retailer would not offer the trade Credit period to his/her customer. Huang [2003. Journal of the Operational Research Society 54, 1011–1015] developed a retailer's replenishment model to reflect the real-life situations by assuming that the retailer also adopts the trade Credit Policy to stimulate his/her customer demand. In Huang's model, it is assumed that the goods are not perishable and the storage capacity is unlimited. Based upon the above argument, we propose a two-warehouse inventory model for deteriorating items under permissible delay in payments. Three theorems are developed to determine the optimal cycle time and numerical examples are given to illustrate these theorems. Finally, the results in this paper generalize the results presented by Huang [2003. Journal of the Operational Research Society 54, 1011–1015].
Yungfu Huang - One of the best experts on this subject based on the ideXlab platform.
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an eoq model under retailer partial trade Credit Policy in supply chain
International Journal of Production Economics, 2008Co-Authors: Yungfu Huang, Kuanghua HsuAbstract:Abstract The main purpose of this paper is to investigate the retailer's inventory Policy under two levels of trade Credit to reflect the supply chain management situation. In this paper, we assume that the retailer has the powerful decision-making right. So, we extend the assumption that the retailer can obtain the full trade Credit offered by the supplier and the retailer just offers the partial trade Credit to his/her customer. Then, we investigate the retailer's inventory system as a cost minimization problem to determine the retailer's optimal inventory Policy under the supply chain management. Two easy-to-use theorems are developed to efficiently determine the optimal inventory Policy for the retailer. We deduce some previously published results of other researchers as special cases. Finally, numerical examples are given to illustrate the theorems and obtain a lot of managerial phenomena.
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optimal retailer s replenishment decisions in the epq model under two levels of trade Credit Policy
European Journal of Operational Research, 2007Co-Authors: Yungfu HuangAbstract:Abstract The main purpose of this paper is to investigate the optimal retailer’s replenishment decisions under two levels of trade Credit Policy within the economic production quantity (EPQ) framework. We assume that the supplier would offer the retailer a delay period and the retailer also adopts the trade Credit Policy to stimulate his/her customer demand to develop the retailer’s replenishment model under the replenishment rate is finite. Furthermore, we assume that the retailer’s trade Credit period offered by supplier M is not shorter than the customer’s trade Credit period offered by retailer N ( M ⩾ N ). Since the retailer cannot earn any interest in this situation, M N . Based upon the above arguments, this paper incorporates both Chung and Huang [K.J. Chung, 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] and Huang [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] under above conditions. In addition, we model the retailer’s inventory system as a cost minimization problem to determine the retailer’s optimal replenishment decisions. Then three theorems are developed to efficiently determine the optimal replenishment decisions for the retailer. We deduce some previously published results of other authors as special cases. Finally, numerical examples are given to illustrate the theorems obtained in this paper. Then, as well as, we obtain a lot of managerial insights from numerical examples.
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optimal retailer s ordering policies in the eoq model under trade Credit financing
Journal of the Operational Research Society, 2003Co-Authors: Yungfu HuangAbstract:The main purpose of this note is to modify the assumption of the trade Credit Policy in previously published results to reflect the real-life situations. All previously published models implicitly assumed that the supplier would offer the retailer a delay period, but the retailer would not offer the trade Credit period to his/her customer. In most business transactions, this assumption is debatable. In this note, we assume that the retailer also adopts the trade Credit Policy to stimulate his/her customer demand to develop the retailer's replenishment model. Furthermore, we assume that the retailer's trade Credit period offered by supplier M is not shorter than the customer's trade Credit period offered by retailer N(M⩾N). Under these conditions, we model the retailer's inventory system as a cost minimization problem to determine the retailer's optimal ordering policies. Then a theorem is developed to determine efficiently the optimal ordering policies for the retailer. We deduce some previously published results of other researchers as special cases. Finally, numerical examples are given to illustrate the theorem obtained in this note.
Liang-yuh Ouyang - One of the best experts on this subject based on the ideXlab platform.
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a comprehensive extension of the optimal replenishment decisions under two levels of trade Credit Policy depending on the order quantity
Applied Mathematics and Computation, 2013Co-Authors: Liang-yuh Ouyang, Chihte Yang, Yalan Chan, Leopoldo Eduardo CardenasbarronAbstract:Recently, Kreng and Tan [Expert Systems with Applications 37 (2010) 5514-5522] developed an economic order quantity (EOQ) model under two levels of trade Credit Policy in which the supplier offers to the wholesaler a permissible delay period M, and the wholesaler also provides its retailers a permissible delay period N (with M>N). In this paper, we point out some inappropriate mathematical expressions in both interest charged and interest earned in Kreng and Tan. For generality, we then extend their model to allow the following facts: (1) the interest rate I"c charged by the supplier is not necessarily higher than the interest rate I"e earned by the wholesaler, and (2) the permissible delay period M offered by the supplier is independent of the permissible delay period N offered by the wholesaler. Furthermore, we study the necessary and sufficient conditions for finding the optimal solution, and thus establish several theoretical results to characterize the solution that provides the minimum annual total relevant cost. Finally, numerical examples are given to illustrate the theoretical results and obtain some managerial insights.
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a particle swarm optimization for solving joint pricing and lot sizing problem with fluctuating demand and trade Credit financing
Computers & Industrial Engineering, 2011Co-Authors: Chungyuan Dye, Liang-yuh OuyangAbstract:Pricing is a major strategy for a retailer to obtain its maximum profit. Furthermore, under most market behaviors, one can easily find that a vendor provides a Credit period (for example 30days) for buyers to stimulate the demand, boost market share or decrease inventories of certain items. Therefore, in this paper, we establish a deterministic economic order quantity model for a retailer to determine its optimal selling price, replenishment number and replenishment schedule with fluctuating demand under two levels of trade Credit Policy. A particle swarm optimization is coded and used to solve the mixed-integer nonlinear programming problem by employing the properties derived in this paper. Some numerical examples are used to illustrate the features of the proposed model.
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optimal strategy for an integrated system with variable production rate when the freight rate and trade Credit are both linked to the order quantity
International Journal of Production Economics, 2008Co-Authors: Liang-yuh OuyangAbstract:Abstract This paper presents an integrated inventory model with variable production rate and price-sensitive demand rate. The buyer's purchases trade Credit linked to the order quantity offered by the supplier. In addition, the buyer pays the freight charge according to a weight schedule. This paper attempts to offer a best Policy that aims at maximizing the joint total profit while the trade Credit and freight rate are simultaneously linked to the order quantity. The same Policy also incorporates considerations on the optimal retail price, order quantity and delivery decision. We provide possible solutions for the buyer and the supplier to collaboratively agree on inventory control, warehouse management, transportation logistics, delivery and billing. Our study demonstrates that significant profit increase for the entire supply chain can be achieved by linking both trade Credit Policy and freight rate Policy to order quantities. An algorithm is furnished to determine the optimal solution. In addition, numerical examples and sensitivity analysis are presented to illustrate the theoretical results.
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optimal pricing shipment and payment Policy for an integrated supplier buyer inventory model with two part trade Credit
European Journal of Operational Research, 2008Co-Authors: Liang-yuh OuyangAbstract:Abstract In this article, we develop an integrated supplier–buyer inventory model with the assumption that the market demand is sensitive to the retail price and the supplier adopts a trade Credit Policy. The trade Credit Policy discussed in this paper is a “two-part” strategy: cash discount and delayed payment. That is, if the buyer pays within M1, the buyer receives a cash discount; otherwise, the full purchasing price must be paid before M2, where M 2 > M 1 ⩾ 0 . The objective of this research is to determine the optimal pricing, ordering, shipping, and payment Policy to maximize the joint expected total profit per unit time. An iterative algorithm is established to obtain the optimal strategy. Furthermore, numerical examples and sensitivity analysis are presented to illustrate the results of the proposed model and to draw managerial insights.
Gour Chandra Mahata - One of the best experts on this subject based on the ideXlab platform.
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an epq based inventory model for exponentially deteriorating items under retailer partial trade Credit Policy in supply chain
Expert Systems With Applications, 2012Co-Authors: Gour Chandra MahataAbstract:The main purpose of this paper is to investigate the optimal retailer's replenishment decisions for deteriorating items under two levels of trade Credit Policy to reflect supply chain management situation within the economic production quantity (EPQ) framework. In this paper, it is assumed that the retailer maintains a powerful decision-making right and can obtain the full trade Credit offered by the supplier yet retailer just offers the partial trade Credit to his/her customers. Under these conditions, the retailer can obtain the most benefits. Then, we model the retailer's inventory system as a cost minimization problem to determine the retailer's optimal replenishment decisions under the supply chain management. Some easy-to-use theorems are developed to efficiently determine the optimal replenishment decisions for the retailer. We deduce some previously published results of other researchers as special cases. Finally, numerical examples are given to illustrate the theorems obtained in this paper. Then, as well as, we obtain a lot of managerial phenomena from numerical examples.
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the optimal cycle time for epq inventory model of deteriorating items under trade Credit financing in the fuzzy sense
2010Co-Authors: Gour Chandra Mahata, Anindya GoswamiAbstract:Normally, the real-world inventory control problems are imprecisely defined and human interventions are often required to solve these decision-making problems. In this paper, a realistic inventory model with imprecise inventory costs have been formulated for deteriorating items under trade Credit Policy within the economic production quantity (EPQ) framework. We assume that the supplier would offer the retailer a delay period and the retailer also adopts the trade Credit Policy to stimulate his/her customer demand to develop the retailer's replenishment model for deteriorating items under the replenishment rate is finite. Under these conditions, we model the retailer's inventory system for deteriorating items as a cost minimization problem to determine the retailer's optimal inventory Policy. We derive the expressions for the annual total inventory cost for the retailer both in the crisp and fuzzy sense. The total variable inventory cost in the fuzzy sense is defuzzified using Graded Mean Integration Representation method and it has been proved that there exists a unique optimal cycle time to minimize the annual total variable cost for the retailer. In addition, a theorem is developed to efficiently determine the optimal ordering policies for the retailer. For easy determination of optimal ordering policies, we have proposed three algorithms. Some previously published results of other authors will be special cases of this paper. Finally, numerical examples are used to illustrate all results obtained in this paper. Then, as well as, we obtain a lot of managerial insights from numerical examples.
Juijung Liao - One of the best experts on this subject based on the ideXlab platform.
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optimal strategy of deteriorating items with capacity constraints under two levels of trade Credit Policy
Applied Mathematics and Computation, 2014Co-Authors: Juijung Liao, Kuonan Huang, Pinshou TingAbstract:Abstract In the existing literatures about trade Credit, there are two payment methods to be adopted, one is the retailer pays off all units sold and keeps the profits for other uses and the other is the retailer pays off the amount owed to the supplier whenever the retailer has money obtained from sales. Based upon the latter payment method, this article will develop an inventory model by considering two levels of trade Credit, limited storage capacity and assuming the retailer can delay incurring interest charges on the unpaid and overdue balance due to the difference between interest earned and interest charged. Four theorems for determining the optimal replenishment cycle time to minimize are developed. Finally, numerical examples are used to illustrate all of the study theorems.
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an eoq model with noninstantaneous receipt and exponentially deteriorating items under two level trade Credit
International Journal of Production Economics, 2008Co-Authors: Juijung LiaoAbstract:Abstract This paper considers the impact of the trade Credit Policy on the classical Economic Production Quantity (EPQ) model for an item subject to exponential decays. Essentially, this study focuses on an exponentially deteriorating item under the conditions of the retailer receiving the supplier trade Credit and providing the customer trade Credit simultaneously so as to minimize the average total cost. A theorem is developed to determine the optimal replenishment policies. The main contribution to literature is the inclusion of the latter type of payment delay. Finally, through numerical examples, sensitive analysis shows the influence of key model parameters.
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an inventory control system under deferrable delivery conditions
Mathematical and Computer Modelling, 2008Co-Authors: Juijung LiaoAbstract:This paper explores an inventory control system for the optimal replenishment time under a trade-Credit Policy of type ''@a/M net T''. It is different from the existing models is that during the time the account is not settled, all generated sales revenue is deposited in an interest bearing account. At the end of this period, the retailer pays the supplier the total amount in the interest bearing account and then starts paying off the amount owed to the supplier whenever the retailer has money obtained from sales. Firstly, we establish a proper model under the above condition. Then, a theorem is developed to determine the optimal ordering policies for the retailer if the supplier permits a payment delay to the retailer. The main contribution to the literature is the inclusion of the latter type of payment delay. A numerical experiment demonstrates the applicability of the theorem, and a sensitivity analysis shows the influence of key model parameters.