Permissible Delay In Payments Research Articles

A multiproduct EOQ model with permissible delay in payments and shortage within warehouse space constraint: a genetic algorithm approach

In today's business transactions, sometimes customers are allowed to pay in a grace period, i.e., permissible delay in payment occurs. This policy is advantageous both for the suppliers and for the customers. This paper formulates a multi-product economic order quantity (EOQ) problem with an order-quantity-dependent permissible delay in payment. In this problem, the shortage is backlogged and there is a warehouse constraint. We show that the model of the problem is a constrained nonlinear-integer-program and propose a genetic algorithm (GA) to solve it. Moreover, a statistical approach is employed to calibrate the parameters of the GA. A numerical example is presented at the end to not only demonstrate the application of the proposed parameter-tuned GA, but also to verify the results and to show GA performs better than a simulated annealing (SA) approach.

Two warehouse inventory model for deteriorating item with exponential demand rate and permissible delay in payment

A two warehouse inventory model for deteriorating items is considered with exponential demand rate and permissible delay in payment. Shortage is not allowed and deterioration rate is constant. In the model, one warehouse is rented and the other is owned. The rented warehouse is provided with better facility for the stock than the owned warehouse, but is charged more. The objective of this model is to find the best replenishment policies for minimizing the total appropriate inventory cost. A numerical illustration and sensitivity analysis is provided.

Economic order quantity under permissible delay in payments for new products in dynamic pricing-advertising condition

Economic ordering policies for a retailer are often strategies subject to the nature of demand, and the kind of benefits received from the suppliers. Globalisation and continuum innovations of new products/technologies put enormous pressure on retailers to attract new customers and look after the current ones concurrently. Thus, a realistic economic order quantity (EOQ) model should link the present business requirements, which can enable the retailer to achieve its business objectives. Based on hazard rate demand, an integrated EOQ model is discussed in the paper for permissible delay in payments, under the assumption that supplier may offer credit periods to the retailer. The demand rate is assumed to be governed by the hazard rate function under dynamic pricing and advertising. The proposed framework is demonstrated with a numerical example and a comprehensive sensitivity analysis is also performed to validate effectiveness of the model.

Optimal replenishment policy for price dependent demand in different financial scenario under fuzzy environment

In literatures of inventory models with permissible delay in payments, authors assumed that retailers have to settle their accounts at the end of credit period and accept only full amount at that time. However, supplier may accept the partial amount at the end of the credit period with unpaid balance settled in due course or he may also accept the full amount at a fix point after the expiry of the credit period instead of accepting the partial payment. Hence in this direction, this paper establishes an inventory model which incorporates the above discussed realistic approach for settling the accounts when supplier offers permissible delay in payments under fuzzy environment. In order to obtain the validity of the model, two hypothetical examples solve by proposed algorithm and a comprehensive sensitivity analyses has been performed to measure the robustness of model.

Lot-sizing policies for defective and deteriorating items with time-dependent demand and trade credit

This study investigates an inventory model with unreliable supply where each received lot may have random fraction of defective items with known distribution. Thus, item inspection becomes essential in all the situations, especially when the items are of deteriorating nature. Moreover, in today's competitive business world, organisations may use promotional tools in order to increase their sales. One such tool is permissible delay in payments where the buyer does not have to pay for the goods purchased until a prescribed period given by the supplier. For the case when both the demand and the price vary with time, we investigate the impact on the retailer's ordering policy for deteriorating items under permissible delay in payments. Numerical examples and sensitivity analysis are illustrated to provide some important managerial implications. [Received 26 December 2016; Revised 20 April 2017; Revised 5 June 2017; Revised 3 July 2017; Accepted 11 July 2017]

Economic order quantity under permissible delay in payments for new products in dynamic pricing-advertising condition

Economic ordering policies for a retailer are often strategies subject to the nature of demand, and the kind of benefits received from the suppliers. Globalisation and continuum innovations of new products/technologies put enormous pressure on retailers to attract new customers and look after the current ones concurrently. Thus, a realistic economic order quantity (EOQ) model should link the present business requirements, which can enable the retailer to achieve its business objectives. Based on hazard rate demand, an integrated EOQ model is discussed in the paper for permissible delay in payments, under the assumption that supplier may offer credit periods to the retailer. The demand rate is assumed to be governed by the hazard rate function under dynamic pricing and advertising. The proposed framework is demonstrated with a numerical example and a comprehensive sensitivity analysis is also performed to validate effectiveness of the model.

An EOQ model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

In this paper, an economic order quantity (EOQ) model for non-instantaneous deteriorating items with permissible delay in payments under the effect of inflation and time value of money is presented. The demand is considered as a deterministic function which includes selling price and advertisement cost. Also in this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. The objective of this model is to minimise the total inventory cost of the retailer by finding the optimal length of time in which there is no inventory shortage and finding the optimal order quantity. Numerical examples are given to justify the model. Sensitivity analysis of the model with respect to several system parameters has been carried out and the implications are discussed in detail.

Effect of shape of the demand function and permissible delay in payments on economic order quantity of high technology products

Often, sales curve of a technology product exhibit a small peak and then decline, before continuing with the traditional bell shaped curve. Under this situation sales curve of the technology products show bimodal pattern. Traditional EOQ models have ignored the bimodal pattern of demand phenomenon during development of the policy frameworks. The approach in this paper is to study the effect of bimodal demand function, on economic order quantity model. Based on hazard rate demand, an integrated EOQ model is discussed in the paper for permissible delay in payments, under the assumption that supplier may offer credit periods to the retailer. The proposed framework is demonstrated with a numerical example and a comprehensive sensitivity analysis is also performed to validate effectiveness of the model.

Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

In this paper, two-warehouse economic order quantity (EOQ) model for non-instantaneous deteriorating items with permissible delay in payments under the effect of inflation and time value of money is presented in which the demand is considered as a deterministic function of selling price and advertisement cost. Also in this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. This model aids in minimising the total inventory cost by finding the optimal intervals and the optimal order quantity. Furthermore, numerical examples are provided to illustrate the proposed model, sensitivity analysis of the optimal solutions with respect to major parameters is carried out and some managerial inferences are obtained.

Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

In this paper, two-warehouse economic order quantity (EOQ) model for non-instantaneous deteriorating items with permissible delay in payments under the effect of inflation and time value of money is presented in which the demand is considered as a deterministic function of selling price and advertisement cost. Also in this model, shortages are allowed and partially backlogged. The backlogging rate is dependent on the waiting time for the next replenishment. This model aids in minimising the total inventory cost by finding the optimal intervals and the optimal order quantity. Furthermore, numerical examples are provided to illustrate the proposed model, sensitivity analysis of the optimal solutions with respect to major parameters is carried out and some managerial inferences are obtained.

An optimal policy for a deteriorating item with generalised deterioration rate and time-dependent demand under permissible delay in payment

The main objective of this paper is to develop an economic order quantity (EOQ) inventory model with the following characteristics: 1) deteriorating items follow a generalised Weibull distribution deterioration rate; 2) no shortage is allowed and (3) delay in payment is permitted. The results have been validated with the help of a numerical example. Sensitivity analysis of the optimal solution with respect to the parameters of the model is performed.

An EOQ model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

An EOQ model for non-instantaneous deteriorating items with partial backlogging and permissible delay in payments under inflation

EOQ model for deteriorating items with stock-dependent demand under inflation and trade credits

In this paper, an economic order quantity (EOQ) model is developed for deteriorating items with inflation under the condition of permissible delay in payment. In general, if the retailer orders a large quantity, the supplier usually willing to provide the retailer a permissible delay of payments. In this paper demand rate is considered as stock dependent. Mathematical model is then developed to determine the optimal cycle time and average cost. Next, we show that the average cost per unit time is a convex function of cycle time. Numerical examples are provided to illustrate the proposed model. Finally, sensitivity analysis of the optimal solution with respect to the parameters and some managerial relevance are discussed.

Effect of shape of the demand function and permissible delay in payments on economic order quantity of high technology products

Effect of shape of the demand function and permissible delay in payments on economic order quantity of high technology products

An optimal policy for a deteriorating item with generalised deterioration rate and time-dependent demand under permissible delay in payment

The main objective of this paper is to develop an economic order quantity (EOQ) inventory model with the following characteristics: 1) deteriorating items follow a generalised Weibull distribution deterioration rate; 2) no shortage is allowed and (3) delay in payment is permitted. The results have been validated with the help of a numerical example. Sensitivity analysis of the optimal solution with respect to the parameters of the model is performed.

An EOQ inventory model with stock dependent demand under permissible delay in payment

An EOQ inventory model with stock dependent demand under permissible delay in payment

A multiproduct EOQ model with permissible delay in payments and shortage within warehouse space constraint: a genetic algorithm approach

A multiproduct EOQ model with permissible delay in payments and shortage within warehouse space constraint: a genetic algorithm approach

Optimal production policies for reverse logistic model under time value of money

One of the important dimensions of environmental protection is the reuse and/or recycling of the items that are returned by the customers for various reasons. Such recycling and reuse prevents the flow of these unusable items into the environment and as such prevents environmental degradation. This paper deals with reverse logistic production inventory model in inflationary conditions and permissible delay in payment over finite planning horizon. The demand rate is a function of on hand inventory, production rate is a linear function of demand and thus nonlinear function of on hand inventory, items are returnable and returnable items are remanufactured. The proposed model considers the two systems simultaneously forward manufacturing system and reverses manufacturing system and derives the optimal production policy. The effects of various parameters involved are discussed. The results are discussed with a numerical example to illustrate the theory and particular cases of the model are discussed in brief.

An EOQ inventory model with stock dependent demand under permissible delay in payment

The present paper focuses on an economic order quantity (EOQ) inventory model for deteriorating items having stock dependent demand when delay in payment is permissible. The deteriorating items follow constant deterioration rate. Shortages are allowed and are completely backlogged. The mathematical models are also derived under two circumstances: Case 1: the permissible delay period is less than or equal to the shortage time point for settling the account and Case 2: the permissible delay period is greater than the shortage time point for settling the account. Numerical examples are provided to illustrate the effectiveness of the proposed methods and solution procedure. Furthermore, sensitivity analysis of the various parameters is carried out and some interesting managerial insights are presented.

An optimal ordering policy for deteriorating items varying with stock dependent demand and time-proportional deterioration under permissible delay in payment

The paper deals with an EOQ (Economic Order Quantity) model for deteriorating items with the following characteristics:Deteriorating items follow time-proportional deterioration rate.Shortages are allowed and fully backlogged.Conditions of permissible delay in payments are considered.Demand is deterministic and stock dependent.The objective of the proposed model is to determine the optimal shortage time point, the optimal cycle time, the optimal order quantity and the optimal total average cost.The effectiveness of this model is validated with a couple of numerical examples and the sensitivity analysis of the optimal solutions to changes in the values of the various parameters associated with the model has been performed.