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A note on optimal ordering policies when the supplier provides a progressive interest scheme

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  • Chung, Kun-Jen

Abstract

Goyal et al. [Goyal, S.K., Teng, J.T., Chang, C.T., 2007. Optimal ordering policies when the supplier provides a progressive interest scheme. European Journal of Operational Research 179, 404-413] explore optimal ordering policies when the supplier provides a progressive interest scheme. The main purpose of this paper is fourfold: (1) This paper simplifies the total relevant cost per year Z(T) of Goyal et al. (2007) such that we can locate the optimal solutions of Z(T) by an easier way. (2) Goyal et al. (2007) use an algebraic approach to search for the optimal solution of Z(T). Their solution procedures ignore the explorations of the functional behavior of Z(T) such that their proofs fill shortcomings. This paper overcomes those shortcomings and presents a correct solution procedure for Goyal et al. (2007). (3) This paper demonstrates that the solution procedure in this paper can locate all optimal solutions of Z(T), however, that of Goyal et al. (2007) can only locate partially optimal solutions of Z(T). (4) Numerical examples reveal that Theorems 1(6) and 2(5) in Goyal et al. (2007) are not necessarily true, in general.

Suggested Citation

  • Chung, Kun-Jen, 2009. "A note on optimal ordering policies when the supplier provides a progressive interest scheme," European Journal of Operational Research, Elsevier, vol. 199(2), pages 611-617, December.
    • Handle: RePEc:eee:ejores:v:199:y:2009:i:2:p:611-617
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    References listed on IDEAS

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    1. Goyal, Suresh Kumar & Teng, Jinn-Tsair & Chang, Chun-Tao, 2007. "Optimal ordering policies when the supplier provides a progressive interest scheme," European Journal of Operational Research, Elsevier, vol. 179(2), pages 404-413, June.
    2. Soni, Hardik & Shah, Nita H., 2008. "Optimal ordering policy for stock-dependent demand under progressive payment scheme," European Journal of Operational Research, Elsevier, vol. 184(1), pages 91-100, January.
    3. Hardik Soni & Ajay S. Gor & Nita H. Shah, 2006. "An Eoq Model For Progressive Payment Scheme Under Dcf Approach," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 509-524.
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    Cited by:

    1. Seifert, Daniel & Seifert, Ralf W. & Protopappa-Sieke, Margarita, 2013. "A review of trade credit literature: Opportunities for research in operations," European Journal of Operational Research, Elsevier, vol. 231(2), pages 245-256.
    2. Longfei He & Han Gao & Xiao Zhang & Qinpeng Wang & Chenglin Hu, 2018. "Optimal Replenishment for Perishable Products with Inventory-Dependent Demand and Backlogging under Continuous and Discrete Progressive Payments," Sustainability, MDPI, vol. 10(10), pages 1-22, October.

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