全部 标题 作者
关键词 摘要

OALib Journal期刊
ISSN: 2333-9721
费用:99美元

查看量下载量

EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity

DOI: 10.4236/oalib.1105140, PP. 1-24

Subject Areas: Business Analysis, Applied Statistical Mathematics

Keywords: Economic Production Quantity (EPQ), Raw Materials, Trade Credit, Limited Storage Capacity

Full-Text   Cite this paper   Add to My Lib

Abstract

The economic production quantity model is widely used as a decision making tool. However, climate change and energy supply instability have raised the transport costs of raw materials, thereby affecting production costs. Therefore, this paper presents a new model that considers the holding costs of raw materials under conditions of two-level trade credit and limited storage capacity. Four theorems are developed to characterize the optimal solutions according to a cost-minimization strategy. Finally, a sensitivity analysis is executed to investigate the effects of the various parameters on ordering policies and the annual total relevant costs.

Cite this paper

Yen, G. , Lin, S. and Lee, A. (2019). EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity. Open Access Library Journal, 6, e5140. doi: http://dx.doi.org/10.4236/oalib.1105140.

References

[1]  Harris, F.W. (1913) How Many Parts to Make at Once. Factory, the Magazine of Management, 10, 135-136,
[2]  Taft, E.W. (1918) The Most Economical Production Lot. Iron Age, 101, 1410-1412.
[3]  Lin, S.D. (2010) The Optimal Inventory Policy of Production Management. Across-Straits Academic Conference Proceedings in Management Theories and Practices, Jilin, China.
[4]  Su, S.M. and Lin, S.D. (2013) The Optimal Inventory Policy of Production Management. Engineering, 5, 9-13. https://doi.org/10.4236/eng.2013.55A002
[5]  Su, S.M., Lin, S.D., and Chang, L.F. (2014) The Optimal Inventory Policy for Reusable Items with Random Planning Horizon Considering Present Value. Applied Mathematics, 5, 292-299. https://doi.org/10.4236/am.2014.52030
[6]  Goyal, S.K. (1985) Economic Order Quantity under Conditions of Permissible Delay in Payments. Journal of the Operational Research Society, 36, 335-338.
https://doi.org/10.1057/jors.1985.56
[7]  Huang, Y.F. (2003) Optimal Retailer’s Ordering Policies in the EOQ Model under Trade Credit Financing. Journal of the Operational Research Society, 54, 1011-1015.
https://doi.org/10.1057/palgrave.jors.2601588
[8]  Chung, K.J. (2011) 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, 38, 13482-13486. https://doi.org/10.1016/j.eswa.2011.04.094
[9]  Chung, K.J. (2013) The EPQ Model under Conditions of Two Levels of Trade Credit and Limited Storage Capacity in Supply Chain Management. International Journal of Systems Science, 44, 1675-1691.
https://doi.org/10.1080/00207721.2012.669864
[10]  Kreng, V.B. and 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. https://doi.org/10.1016/j.eswa.2009.12.014
[11]  Min, J., Zhou, Y.W. and Zhao, J. (2010) An Inventory Model for Deteriorating Items under Stock-Dependent Demand and Two-Level Trade Credit. Applied Mathematical Modelling, 34, 3273-3285. https://doi.org/10.1016/j.apm.2010.02.019
[12]  Yen, G.F., Chung, K.J. and Chen, T.C. (2012) The Optimal Retailer’s Ordering Policies with Trade Credit Financing and Limited Storage Capacity in the Supply Chain System. International Journal of Systems Science, 43, 2144-2159.
https://doi.org/10.1080/00207721.2011.565133
[13]  Srivastava, H.M., Yen, G.F., Lee, A.K., Wu, Y.X. and Lin, S.D. (2018) The Optimal Retailer’s EPQ Policies with Two-Level Trade Credit under Alternate Due Date of Payment and Limited Storage Capacity. Applied Mathematics & Information Sciences, 12, 1073-1089. https://doi.org/10.18576/amis/120602
[14]  Hariga, M.A. (2011) Inventory Models for Multi-Warehouse Systems under Fixed and Flexible Space Leasing Contracts. Computers & Industrial Engineering, 61, 744-751. https://doi.org/10.1016/j.cie.2011.05.006
[15]  Hartley, R.V. (1976) Operations Research: A Managerial Emphasis. 1st Edition, Goodyear Publishing, Pacific Palisades, CA.
[16]  Liao, J.J., Chung, K.J. and Huang, K.N. (2013) A Deterministic Inventory Model for Deteriorating Items with Two Warehouses and Trade Credit in a Supply Chain System. International Journal of Production Economics, 146, 557-565.
https://doi.org/10.1016/j.ijpe.2013.08.001

Full-Text


comments powered by Disqus

Contact Us

service@oalib.com

QQ:3279437679

WhatsApp +8615387084133

WeChat 1538708413