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The Effect Of Credit Period On The Optimal Lot Size For Deteriorating Items With Time Varying Demand And Deterioration Rates

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  • HORNG-JINH CHANG

    (Graduate Institute of Management Sciences, Tamkang University, Tamsui, Taipei, Taiwan 25173, ROC)

  • CHUNG-YUAN DYE

    ()
    (Department of Business Administration, Shu-Te University, Yen Chau Kaohsiung, Taiwan, 824, ROC)

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    Abstract

    In this paper, we present an inventory model for deteriorating items with time varying demand and deterioration rates when the credit period depends on the retailer's ordering quantity. We also provide simple solution procedures for finding the optimal replenishment period and show in a rigorous way that the policy suggested is indeed optimal. Further, we use numerical examples to illustrate the model and conclude the paper with suggestions for possible future research.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Asia-Pacific Journal of Operational Research.

    Volume (Year): 22 (2005)
    Issue (Month): 02 ()
    Pages: 211-227

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    Handle: RePEc:wsi:apjorx:v:22:y:2005:i:02:p:211-227

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    Related research

    Keywords: Credit period; lot size; deteriorating items; time varying demand;

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