Title: Lot-sizing policies for defective and deteriorating items with time-dependent demand and trade credit
Authors: Sunil Tiwari; Hui-Ming Wee; Sumon Sarkar
Addresses: The Logistics Institute-Asia Pacific, National University of Singapore, 21 Heng Mui Keng Terrace, Singapore 119613, Singapore ' Department of Industrial and Systems Engineering, Chung Yuan Christian University, No. 200, Chung Pei Road, Chung Li District, Taoyuan City, 32023, Taiwan ' Department of Mathematics, Jadavpur University, Kolkata, India
Abstract: This study investigates an inventory model with unreliable supply where each received lot may have random fraction of defective items with known distribution. Thus, item inspection becomes essential in all the situations, especially when the items are of deteriorating nature. Moreover, in today's competitive business world, organisations may use promotional tools in order to increase their sales. One such tool is permissible delay in payments where the buyer does not have to pay for the goods purchased until a prescribed period given by the supplier. For the case when both the demand and the price vary with time, we investigate the impact on the retailer's ordering policy for deteriorating items under permissible delay in payments. Numerical examples and sensitivity analysis are illustrated to provide some important managerial implications. [Received 26 December 2016; Revised 20 April 2017; Revised 5 June 2017; Revised 3 July 2017; Accepted 11 July 2017]
Keywords: EOQ inventory model; deterioration; imperfect items; time-dependent demand; trade credit.
European Journal of Industrial Engineering, 2017 Vol.11 No.5, pp.683 - 703
Available online: 25 Oct 2017 *Full-text access for editors Access for subscribers Purchase this article Comment on this article