The main purpose of this paper is to investigate the retailer’s optimal replenishment policy under permissible delay in payments within the economic order quantity (EOQ) framework. Previously published articles dealing with optimal order quantity with permissible delay in payments assumed that the supplier only offers the retailer single trade credit period. In fact, most suppliers frequently o...

It has been more than ninety years since the classical square-root EOQ formula was given by Harris (1913). Yet there is no continuous-review stochastic inventory model published in the literature with a general enough demand, whose optimal policy would reduce to the square-root formula in the absence of the stochastic components of the underlying demand. Why? In this paper, we surmise the reaso...

In this study, an EOQ (Economic Order Quantity) inventory mathematical model is constructed for a deteriorating item having time dependent demand when delay in payment is permissible. The deterioration rate is assumed to be a constant and the time varying demand rate is taken to be an exponential declining function of time. Mathematical models are also derived under two different circumstances,...

Inventory management at a single or multiple levels of a supply chain is usually performed with computations such as Economic Order Quantity or Markov Decision Processes. The former makes many unrealistic assumptions and the later requires specialist Operations Research knowledge to implement. Dynamic Bayesian networks provide an alternative framework which is accessible to non-specialist manag...

a r t i c l e i n f o The optimal replenishment policy for an economic production quantity (EPQ)-based inventory model with nonconforming items and breakdown is presented. A real-life production system inevitably generates nonconforming items and has equipment breakdowns owing to process deterioration or other uncontrollable factors. This study addressed these issues in an EPQ-based system to o...

Motivated by a particular multinational cutting-tools manufacturer, we extend the traditional economic order quantity (EOQ) model for maintenance-repair-and-overhaul (MRO) customers under stochastic purchase price and use it to show how price variance leads to bullwhip effect for the MRO manufacturer despite constant consumption by the customer. Our extension of the EOQ model is based on two as...

This paper deals with the sensitivity analysis (SA) of inventory management models when uncertainty in the input parameters is given full consideration. We make use of Sobol’ function and variance decomposition method for determining the most influential parameters on the model output. We first illustrate the method by means of an analytical example. We provide the expression of the global impo...

In recent researches, vendor managed inventory (VMI) policy is rarely considered for deteriorating items.   This study considered the supply chain partner’s collaboration via a VMI system and provided an EOQ model for a two-level supply chain (single supplier - single retailer) to examine the inventory management proceedings for VMI and non-VMI supply chains. By a new approach in modeling, the ...

So far, inventory control for PP and LDPE products Supprise Kapsul at PT XYZ has been carried out with the assumption that practitioners are not academics, an average approach of last three months. For this reason, researchers implemented raw material using EOQ JIT/EOQ methods. By evaluative research method, sample is in form operational materials, type data documentation, source primary obtain...