Abstract
A profit maximizing economic order quantity (EOQ) model is studied under linked-to-order hybrid prepayment and delay payment scheme considering the practical scenario that the capacity of the retailer's own warehouse (OW) is limited. Shortages are allowed which are accumulated partially during the stock out period. The main objective is to decide whether a rented warehouse (RW) is needed to obtain the optimal ordering and replenishment policies for a retailer. The closed-form optimal solutions are found examining all possible cases and an algorithm is constructed to achieve the global optimal solutions for the retailer. Finally, some management insights are drawn by observing the applicability of the developed algorithm and also by performing sensitivity analyses on different parameters.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
