An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit

In the traditional inventory system, it was implicitly assumed that the buyer pays to the seller as soon as he receives the items. In today’s competitive industry, however, the seller usually offers the buyer a delay period to settle the account of the goods. Not only the seller but also the buyer m...

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Main Authors:	Molamohamadi, Zohreh, Arshizadeh, Rahman, Napsiah, Ismail, Amir, Azizi
Format:	Article
Language:	English
Published:	Hindawi Publishing Corporation 2014
Subjects:	TS Manufactures
Online Access:	http://umpir.ump.edu.my/id/eprint/25410/ http://umpir.ump.edu.my/id/eprint/25410/ http://umpir.ump.edu.my/id/eprint/25410/ http://umpir.ump.edu.my/id/eprint/25410/1/An%20economic%20order%20quantity%20model%20with%20completely%20backordering.pdf

id	ump-25410
recordtype	eprints
spelling	ump-254102019-12-24T07:36:40Z http://umpir.ump.edu.my/id/eprint/25410/ An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit Molamohamadi, Zohreh Arshizadeh, Rahman Napsiah, Ismail Amir, Azizi TS Manufactures In the traditional inventory system, it was implicitly assumed that the buyer pays to the seller as soon as he receives the items. In today’s competitive industry, however, the seller usually offers the buyer a delay period to settle the account of the goods. Not only the seller but also the buyer may apply trade credit as a strategic tool to stimulate his customers’ demands. This paper investigates the effects of the latter policy, two-level trade credit, on a retailer’s optimal ordering decisions within the economic order quantity framework and allowable shortages. Unlike most of the previous studies, the demand function of the customers is considered to increase with time. The objective of the retailer’s inventory model is to maximize the profit. The replenishment decisions optimally are obtained using genetic algorithm. Two special cases of the proposed model are discussed and the impacts of parameters on the decision variables are finally investigated. Numerical examples demonstrate the profitability of the developed two-level supply chain with backorder. Hindawi Publishing Corporation 2014 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/25410/1/An%20economic%20order%20quantity%20model%20with%20completely%20backordering.pdf Molamohamadi, Zohreh and Arshizadeh, Rahman and Napsiah, Ismail and Amir, Azizi (2014) An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit. Advances in Decision Sciences, 2014 (340135). pp. 1-11. ISSN 2090-3359 https://doi.org/10.1155/2014/340135 https://doi.org/10.1155/2014/340135
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	TS Manufactures
spellingShingle	TS Manufactures Molamohamadi, Zohreh Arshizadeh, Rahman Napsiah, Ismail Amir, Azizi An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
description	In the traditional inventory system, it was implicitly assumed that the buyer pays to the seller as soon as he receives the items. In today’s competitive industry, however, the seller usually offers the buyer a delay period to settle the account of the goods. Not only the seller but also the buyer may apply trade credit as a strategic tool to stimulate his customers’ demands. This paper investigates the effects of the latter policy, two-level trade credit, on a retailer’s optimal ordering decisions within the economic order quantity framework and allowable shortages. Unlike most of the previous studies, the demand function of the customers is considered to increase with time. The objective of the retailer’s inventory model is to maximize the profit. The replenishment decisions optimally are obtained using genetic algorithm. Two special cases of the proposed model are discussed and the impacts of parameters on the decision variables are finally investigated. Numerical examples demonstrate the profitability of the developed two-level supply chain with backorder.
format	Article
author	Molamohamadi, Zohreh Arshizadeh, Rahman Napsiah, Ismail Amir, Azizi
author_facet	Molamohamadi, Zohreh Arshizadeh, Rahman Napsiah, Ismail Amir, Azizi
author_sort	Molamohamadi, Zohreh
title	An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
title_short	An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
title_full	An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
title_fullStr	An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
title_full_unstemmed	An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
title_sort	economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit
publisher	Hindawi Publishing Corporation
publishDate	2014
url	http://umpir.ump.edu.my/id/eprint/25410/ http://umpir.ump.edu.my/id/eprint/25410/ http://umpir.ump.edu.my/id/eprint/25410/ http://umpir.ump.edu.my/id/eprint/25410/1/An%20economic%20order%20quantity%20model%20with%20completely%20backordering.pdf
first_indexed	2023-09-18T22:39:00Z
last_indexed	2023-09-18T22:39:00Z
_version_	1777416787928809472

An economic order quantity model with completely backordering and nondecreasing demand under two-level trade credit

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