The main purpose of this paper is to investigate the optimal retailer’s replenishment decisions under two levels of trade credit policy within the economic production quantity (EPQ) framework. We assume that the supplier would offer the retailer a delay period and the retailer also adopts the trade credit policy to stimulate his/her customer demand to develop the retailer’s replenishment model ...

The classical economic production quantity (EPQ) model assumes that items produced are of perfect quality and the production rate is constant. However, production quality depends on the condition of the process. Due to process deterioration or other factors, the production process may shift and produce imperfect quality items. These imperfect quality items sometimes can be reworked and repaired...

Cárdenas-Barrón (2010) applied algebraic methods to EOQ and EPQ models without referring to differential equations, allowing researchers without backgrounds in calculus to understand inventory models with ease. In this note, we point out that the derivation for EPQ model can be obtained by a transformation of the EOQ model and then we provide a further simplification of his approach such that f...

An economic order quantity model with backordering is investigated under a hybrid payment scheme. The payment scheme, which is also linked to order quantity, involves multiple advance payments as well as delayed payment. Incorporating this payment scheme can efficiently stimulate sales due to applying delayed payment; besides it provides the benefits of advance payment such as controlling the r...

Order processing and inventory management are critical to costs. Therefore, this research aims reduce cost lead time for case study construction material retailer. The objectives 1) the order of retailer; 2) analysis techniques in decision making determine appropriate quantity. 30 employees interviewed collecting data a company raw from January – December, 2021 is used as data. ABC EOQ calculat...

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In this paper, we address the problem of deciding the optimal ordering quantity and frequency for a supplier– retailer logistic system in which the transportation cost as well as the multiple uses of the vehicles are considered. Based on the traditional economic order quantity (EOQ) formula, a modified EOQ model is set up and an algorithm for the model is presented. Computational results verify...