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Economic Order Quantity Under Conditions Of A One-Time-Only Extended Permissible Delay Period In Payments


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    (Department of DS & MIS, John Molson School of Business, Concordia University, Montreal, Quebec, Canada H3G1M8, Canada)


    (Department of Statistics, Tamkang University, Tamsui, Taipei, Taiwan 25137, ROC)

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    In today's business environment, a supplier usually offers customers a permissible delay for settling outstanding account balance for the goods supplied. However, a supplier on occasion may allow this permissible delay in payments to be more than the usual during a given specified period. In this paper, we establish an appropriate model for a customer to determine its optimal special order quantity when the supplier offers a special extended permissible delay for one time only during a specified period. We then establish two theorems for a customer to find the optimal special order quantity. Finally, several numerical examples are given to illustrate the theoretical results.

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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): 25 (2008)
    Issue (Month): 02 ()
    Pages: 267-277

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    Handle: RePEc:wsi:apjorx:v:25:y:2008:i:02:p:267-277

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    Keywords: Inventory; payment delay; special order quantity;


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    Cited by:
    1. Kin Chan, Chi & Lee, Y.C.E. & Goyal, S.K., 2010. "A delayed payment method in co-ordinating a single-vendor multi-buyer supply chain," International Journal of Production Economics, Elsevier, vol. 127(1), pages 95-102, September.


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