An accurate and reliable solution procedure for the EOQ model with deteriorating items under supplier credits linked to the ordering quantity

Abstract

The inventory problem consists of two parts: (1) the modelling and (2) the solution procedure. The modelling can provide insight to solve the inventory problem and the solution procedure involves the implementation of the inventory model. Basically, the modelling and the solution procedure to the inventory problem are equally important. Chang et al.’s inventory model [Chang, C. T., Ouyang, L. Y., & Teng, J. T (2003). An EOQ model with deteriorating items under inflation when supplier credits linked to order quantity. Applied Mathematical Modelling, 27, 983–996] is correct and interesting. However, they ignore the explorations of the functional behaviors of the annual total relevant cost to locate the optimal solutions such that proofs of their solution procedures are not perfect from the viewpoint of logic. The main purposes of this paper are to provide accurate and reliable solution procedures to improve [Chang, C. T., Ouyang, L. Y., & Teng, J. T (2003). An EOQ model with deteriorating items under inflation when supplier credits linked to order quantity. Applied Mathematical Modelling, 27, 983–996].