Credit financing in economic ordering policies of time - dependent deteriorating items
نویسنده
چکیده
This paper presents the economic ordering policies of time-dependent deteriorating items in presence of trade credit using of discounted cash-flows (DCF) approach. In inventory analysis a DCF approach permits a proper recognition of the financial implication of the opportunity cost and out-of-pocket cost. In the inventory model, shortages are not allowed. In this study mathematical models are also derived under three different situations i.e. case 1: Instantaneous cash-flows, case 2: Credit only on units in stock; and case 3: Fixed credit period. Besides, expressions for on inventory systems present value of all future cashflows are derived for these three cases. The comprehensive sensitivity analysis is given for the applicability of the proposed model. The main purpose of this paper is to investigate the optimal (minimum) present values of present values of all future cash flows for case 1, case 2, and case 3,for different discount rate ‘r’ and different credit period ‘m’.
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