Retailer's EOQ model with limited storage space under partially permissible delay in payments
type: Item
instance of: scholarly article
title: Retailer's EOQ model with limited storage space under partially permissible delay in payments
zbMATH Open document ID: 1141.90321
DOI: 10.1155/2007/90873
author: Yung-Fu Huang
author: C. S. Lai
author: Maw-Liann Shyu
published in: Mathematical Problems in Engineering
publication date: 2008-08-13T00:00:00Z
full work available at URL: https://eudml.org/doc/54373
review text: Summary: The main purpose of this paper wants to investigate the optimal retailer's lot-sizing policy with two warehouses under partially permissible delay in payments within the economic order quantity (EOQ) framework. In this paper, we want to extend that fully permissible delay in payments to the supplier would offer the retailer partially permissible delay in payments. That is, the retailer must make a partial payment to the supplier when the order is received. Then the retailer must pay off the remaining balance at the end of the permissible delay period. In addition, we want to add the assumption that the retailer's storage space is limited. That is, the retailer will rent the warehouse to store these exceeding items when the order quantity is larger than retailer's storage space. Under these conditions, we model the retailer's inventory system as a cost minimization problem to determine the retailer's optimal cycle time and optimal order quantity. Three theorems are developed to efficiently determine the optimal replenishment policy for the retailer. Finally, numerical examples are given to illustrate these theorems and obtained a lot of managerial insights.
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 90B30
zbMATH DE Number: 5311284
MaRDI profile type: Publication
OpenAlex ID: W2083179072
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description: scientific article; zbMATH DE number 5311284