The optimal ordering policy with trade credit under two different payment methods

[[abstract]]Suppliers’ offering delay payment terms to retailers can be regarded as a type of price reduction. In today’s ever competitive marketplace, offering delay payments has become a commonly adopted method to suppliers. Most of the inventory models with permissible delay in payments assumed that the entire lot size is delivered at the same time. However, in practice, goods ordered are usually arrived overtime in separate batches. In this study, we discuss an inventory problem with a finite replenishment rate under trade credit for two payment methods. We establish a theorem to find the optimal solution for each payment method. Numerical examples are also given to illustrate the solution procedure. Finally, to investigate the effect of changes of some main parameter values on the optimal solution, a sensitivity analysis is performed and some management interpretations are proposed.[[journaltype]]國外[[incitationindex]]SCI[[ispeerreviewed]]Y[[booktype]]紙本[[countrycodes]]DE

A Fuzzy Inventory System with Deteriorating Items under Supplier Credits Linked to Ordering Quantity

[[abstract]]The inventory problem associated with trade credit is a popular topic in which interest income and interest payments are important issues. Most studies related to trade credit assume that the interest rate is both fixed and predetermined. However, in the real market, many factors such as financial policy, monetary policy and inflation, may affect the interest rate. Moreover, within the environment of merchandise storage, some distinctive factors arise which ultimately affect the quality of products such as temperature, humidity, and storage equipment. Thus, the rate of interest charges, the rate of interest earned, and the deterioration rate in a real inventory problem may be fuzzy. In this paper, we deal with these three imprecise parameters in inventory modeling by utilizing the fuzzy set theory. We develop the fuzzy inventory model based on Chang et al.'s [1] model by fuzzifying the rate of interest charges, the rate of interest earned, and the deterioration rate into the triangular fuzzy number. Subsequently, we discuss how to determine the optimal ordering policy so that the total relevant inventory cost, in the fuzzy sense, is minimal. Furthermore, we show that Chang et al.'s [1] model (the crisp model) is a special case of our model (the fuzzy model). Finally, numerical examples are provided to illustrate these results.[[notice]]補正完畢[[journaltype]]國內[[incitationindex]]SCI[[incitationindex]]EI[[ispeerreviewed]]Y[[booktype]]紙本[[countrycodes]]TW

Advance sales system with price-dependent demand and an appreciation period under trade credit

[[abstract]]With globalization, companies are facing fierce competition. Offering an appreciation period has become a commonly adopted method by retailers to sustain competitive advantage. During the appreciation period, customers can request to return products for any reason. In addition, retailers provide advance sales to attract additional customers. The supplier usually provides the retailer with a trade credit, which they can use as a type of price reduction to attract additional customers. Price is viewed as an important vehicle to sell products and enhance revenues. Therefore, in this article, we establish an inventory model with price-dependent demand for a retailer who simultaneously receives trade credit from its supplier, and offers advance sales and an appreciation period to its customers. We first establish a proper model and then provide an easy-to-use method to obtain an ordering policy for the retailer to achieve its maximum total profit. Finally, numerical examples are given to illustrate the solution procedure

A study of inventory problem with appreciation period and trade credit under advance sales

[[abstract]]Today, competition is not only rife but growing more intense every year. Due to the effects of globalization, advances in technology and information, successful companies have to keep growing. In order to sustain competitive advantage and increase market share, retailers provide better and better service. In the marketplace, offering appreciation period has become a commonly adopted method to retailers. During the appreciation period, customers can make a request to return products for any kind of reason. Packaging errors and product defects are some of the common reasons that customers make a request to return products. To attract more customers, it is a common practice for retailers to provide advance sales. Advance sales provide numerous benefits for companies, including gaining additional discriminative customers and increased profit due to interest earned from payments received from committed customers prior to the start of the regular selling period. In addition, trade credit is a common payment behavior in business to business (B2B) and business to customer (B2C) transactions. The supplier usually provides the retailer a trade credit to attract more customers who consider it to be a type of price reduction. Therefore, in this article, we establish an inventory model for a retailer who simultaneously receives trade credit from its supplier, and offers advance sales and appreciation period to its customers. Finally, numerical examples are given to illustrate the solution procedure and a sensitivity analysis is performed to investigate the effect of changes of some main parameter values on the optimal solution.[[sponsorship]]淡江大學管理科學學系[[conferencetype]]國際[[conferencetkucampus]]淡水校園[[conferencedate]]20130518~20130518[[iscallforpapers]]Y[[conferencelocation]]Tamsui, New Taipei City, Taiwa

The retailer's optimal ordering policy with trade credit in different financial environments

[[abstract]]In business transactions, it is quite common for the supplier to offer the retailer a permissible delay in payments in order to stimulate the demand of the retailer. The retailer can either pay off all accounts at the end of the credit period or delay incurring interest charges on the unpaid and overdue balance due to the difference between interest earned and interest charged. In this study, we consider different financial environments when the supplier provides a permissible delay in payments. The proper mathematical models are developed to find the optimal order quantity and payoff time for maximizing the retailer’s total profit for each financial environment. Furthermore, two theorems are established to determine the optimal solutions. Finally, numerical examples are presented to illustrate the proposed model. A sensitivity analysis is performed and economic interpretations are proposed.[[incitationindex]]SCI[[booktype]]紙本[[booktype]]電子