IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v155y2014icp185-193.html
   My bibliography  Save this article

An EOQ model with partial backordering and advance payments for an evaporating item

Author

Listed:
  • Taleizadeh, Ata Allah

Abstract

In the classic Economic Order Quantity model the purchasing cost of an order is paid at the time of its receipt. In some cases retailers ask purchasers to pay all or a fraction of the purchasing cost in advance and may allow them to divide the prepayment into several equal-sized parts. In this paper, an economic order quantity model for an evaporating item with partial backordering and partial consecutive prepayments is developed with a real case study of a gasoline station. Real numerical examples illustrate the proposed model and the solution method.

Suggested Citation

  • Taleizadeh, Ata Allah, 2014. "An EOQ model with partial backordering and advance payments for an evaporating item," International Journal of Production Economics, Elsevier, vol. 155(C), pages 185-193.
    • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:185-193
    DOI: 10.1016/j.ijpe.2014.01.023
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527314000371
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2014.01.023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hung, Kuo-Chen, 2011. "An inventory model with generalized type demand, deterioration and backorder rates," European Journal of Operational Research, Elsevier, vol. 208(3), pages 239-242, February.
    2. Liao, Jui-Jung, 2008. "An EOQ model with noninstantaneous receipt and exponentially deteriorating items under two-level trade credit," International Journal of Production Economics, Elsevier, vol. 113(2), pages 852-861, June.
    3. Taleizadeh, Ata Allah & Pentico, David W. & Aryanezhad, Mirbahador & Ghoreyshi, Seyed Mohammad, 2012. "An economic order quantity model with partial backordering and a special sale price," European Journal of Operational Research, Elsevier, vol. 221(3), pages 571-583.
    4. Abad, Prakash L., 2008. "Optimal price and order size under partial backordering incorporating shortage, backorder and lost sale costs," International Journal of Production Economics, Elsevier, vol. 114(1), pages 179-186, July.
    5. Liao, Jui-Jung & Huang, Kuo-Nan & Chung, Kun-Jen, 2012. "Lot-sizing decisions for deteriorating items with two warehouses under an order-size-dependent trade credit," International Journal of Production Economics, Elsevier, vol. 137(1), pages 102-115.
    6. Yang, Hui-Ling, 2004. "Two-warehouse inventory models for deteriorating items with shortages under inflation," European Journal of Operational Research, Elsevier, vol. 157(2), pages 344-356, September.
    7. Yang, Hui-Ling, 2006. "Two-warehouse partial backlogging inventory models for deteriorating items under inflation," International Journal of Production Economics, Elsevier, vol. 103(1), pages 362-370, September.
    8. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(1), pages 248-260, March.
    9. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    10. Yu, Jonas C.P., 2013. "A collaborative strategy for deteriorating inventory system with imperfect items and supplier credits," International Journal of Production Economics, Elsevier, vol. 143(2), pages 403-409.
    11. Taleizadeh, Ata Allah & Pentico, David W., 2014. "An Economic Order Quantity model with partial backordering and all-units discount," International Journal of Production Economics, Elsevier, vol. 155(C), pages 172-184.
    12. Sarkar, Biswajit & Sarkar, Sumon, 2013. "An improved inventory model with partial backlogging, time varying deterioration and stock-dependent demand," Economic Modelling, Elsevier, vol. 30(C), pages 924-932.
    13. Taleizadeh, Ata Allah & Mohammadi, Babak & Cárdenas-Barrón, Leopoldo Eduardo & Samimi, Hadi, 2013. "An EOQ model for perishable product with special sale and shortage," International Journal of Production Economics, Elsevier, vol. 145(1), pages 318-338.
    14. Teng, Jinn-Tsair & Ouyang, Liang-Yuh & Chen, Liang-Ho, 2007. "A comparison between two pricing and lot-sizing models with partial backlogging and deteriorated items," International Journal of Production Economics, Elsevier, vol. 105(1), pages 190-203, January.
    15. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    16. Dye, Chung-Yuan, 2007. "Joint pricing and ordering policy for a deteriorating inventory with partial backlogging," Omega, Elsevier, vol. 35(2), pages 184-189, April.
    17. Taleizadeh, Ata Allah & Pentico, David W., 2013. "An economic order quantity model with a known price increase and partial backordering," European Journal of Operational Research, Elsevier, vol. 228(3), pages 516-525.
    18. Jaggi, Chandra K. & Aggarwal, K.K. & Goel, S.K., 2006. "Optimal order policy for deteriorating items with inflation induced demand," International Journal of Production Economics, Elsevier, vol. 103(2), pages 707-714, October.
    19. Abad, P. L., 2003. "Optimal pricing and lot-sizing under conditions of perishability, finite production and partial backordering and lost sale," European Journal of Operational Research, Elsevier, vol. 144(3), pages 677-685, February.
    20. Hui-Ming Wee & Yu, Jonas, 1997. "A deteriorating inventory model with a temporary price discount," International Journal of Production Economics, Elsevier, vol. 53(1), pages 81-90, November.
    21. Chandra Jaggi & Aditi Khanna & Priyanka Verma, 2011. "Two-warehouse partial backlogging inventory model for deteriorating items with linear trend in demand under inflationary conditions," International Journal of Systems Science, Taylor & Francis Journals, vol. 42(7), pages 1185-1196.
    22. Yang, P.C. & Chung, S.L. & Wee, H.M. & Zahara, E. & Peng, C.Y., 2013. "Collaboration for a closed-loop deteriorating inventory supply chain with multi-retailer and price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 143(2), pages 557-566.
    23. Lo, Sh-Tyan & Wee, Hui-Ming & Huang, Wen-Chang, 2007. "An integrated production-inventory model with imperfect production processes and Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 106(2), pages 493-505, April.
    24. Chang, Chun-Tao, 2004. "An EOQ model with deteriorating items under inflation when supplier credits linked to order quantity," International Journal of Production Economics, Elsevier, vol. 88(3), pages 307-316, April.
    25. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    26. Soni, Hardik N, 2013. "Optimal replenishment policies for non-instantaneous deteriorating items with price and stock sensitive demand under permissible delay in payment," International Journal of Production Economics, Elsevier, vol. 146(1), pages 259-268.
    27. Jaggi, C. K. & Aggarwal, S. P., 1994. "Credit financing in economic ordering policies of deteriorating items," International Journal of Production Economics, Elsevier, vol. 34(2), pages 151-155, March.
    28. Pentico, David W. & Drake, Matthew J., 2009. "The deterministic EOQ with partial backordering: A new approach," European Journal of Operational Research, Elsevier, vol. 194(1), pages 102-113, April.
    29. Pal, A.K. & Bhunia, A.K. & Mukherjee, R.N., 2006. "Optimal lot size model for deteriorating items with demand rate dependent on displayed stock level (DSL) and partial backordering," European Journal of Operational Research, Elsevier, vol. 175(2), pages 977-991, December.
    30. Liao, Hung-Chang & Tsai, Chih-Hung & Su, Chao-Ton, 2000. "An inventory model with deteriorating items under inflation when a delay in payment is permissible," International Journal of Production Economics, Elsevier, vol. 63(2), pages 207-214, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    2. Ghiami, Yousef & Beullens, Patrick, 2016. "Planning for shortages? Net Present Value analysis for a deteriorating item with partial backlogging," International Journal of Production Economics, Elsevier, vol. 178(C), pages 1-11.
    3. Shayan Tavakoli & Ata Allah Taleizadeh, 2017. "An EOQ model for decaying item with full advanced payment and conditional discount," Annals of Operations Research, Springer, vol. 259(1), pages 415-436, December.
    4. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    5. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    6. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.
    7. Joaquín Sicilia & Luis San-José & Juan García-Laguna, 2012. "An inventory model where backordered demand ratio is exponentially decreasing with the waiting time," Annals of Operations Research, Springer, vol. 199(1), pages 137-155, October.
    8. Pentico, David W. & Toews, Carl & Drake, Matthew J., 2015. "Approximating the EOQ with partial backordering at an exponential or rational rate by a constant or linearly changing rate," International Journal of Production Economics, Elsevier, vol. 162(C), pages 151-159.
    9. M. Palanivel & R. Uthayakumar, 2016. "Two-warehouse inventory model for non-instantaneous deteriorating items with partial backlogging and inflation over a finite time horizon," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 278-302, June.
    10. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    11. Liao, Jui-Jung & Chung, Kun-Jen & Huang, Kuo-Nan, 2013. "A deterministic inventory model for deteriorating items with two warehouses and trade credit in a supply chain system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 557-565.
    12. Reza Maihami & Behrooz Karimi & Seyyed Mohammad Taghi Fatemi Ghomi, 2017. "Effect of two-echelon trade credit on pricing-inventory policy of non-instantaneous deteriorating products with probabilistic demand and deterioration functions," Annals of Operations Research, Springer, vol. 257(1), pages 237-273, October.
    13. Majumder, P. & Bera, U.K. & Maiti, M., 2016. "An EPQ model for two-warehouse in unremitting release pattern with two-level trade credit period concerning both supplier and retailer," Applied Mathematics and Computation, Elsevier, vol. 274(C), pages 430-458.
    14. Hossein Salehi & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2016. "An EOQ model with random disruption and partial backordering," International Journal of Production Research, Taylor & Francis Journals, vol. 54(9), pages 2600-2609, May.
    15. Taleizadeh, Ata Allah & Noori-daryan, Mahsa & Cárdenas-Barrón, Leopoldo Eduardo, 2015. "Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor managed inventory system with deteriorating items," International Journal of Production Economics, Elsevier, vol. 159(C), pages 285-295.
    16. Mamta Gupta & Sunil Tiwari & Chandra K. Jaggi, 2020. "Retailer’s ordering policies for time-varying deteriorating items with partial backlogging and permissible delay in payments in a two-warehouse environment," Annals of Operations Research, Springer, vol. 295(1), pages 139-161, December.
    17. R. Sundara rajan & R. Uthayakumar, 2017. "Comprehensive solution procedure for optimizing replenishment policies of instantaneous deteriorating items with stock-dependent demand under partial trade credit linked to order quantity," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(2), pages 1343-1373, November.
    18. A.K. Bhunia & A.A. Shaikh & R.K. Gupta, 2015. "A study on two-warehouse partially backlogged deteriorating inventory models under inflation via particle swarm optimisation," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 1036-1050, April.
    19. Ghiami, Yousef & Williams, Terry, 2015. "A two-echelon production-inventory model for deteriorating items with multiple buyers," International Journal of Production Economics, Elsevier, vol. 159(C), pages 233-240.
    20. Roya Tat & Ata Allah Taleizadeh & Maryam Esmaeili, 2015. "Developing economic order quantity model for non-instantaneous deteriorating items in vendor-managed inventory (VMI) system," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1257-1268, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:185-193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.