An integrated vendor–buyer inventory model with order-processing cost reduction and permissible delay in payments
| Autor: | Ji-Cheng Wu, Chao-Kuei Huang, Kun-Jen Chung, Deng-Maw Tsai |
|---|---|
| Rok vydání: | 2010 |
| Předmět: |
Inventory control
Information Systems and Management General Computer Science Operations research Vendor Management Science and Operations Research Industrial and Manufacturing Engineering Purchasing Variable cost Cost reduction Order (business) Modeling and Simulation Order processing Economics Operations management Electronic data interchange |
| Zdroj: | European Journal of Operational Research. 202:473-478 |
| ISSN: | 0377-2217 |
| DOI: | 10.1016/j.ejor.2009.05.035 |
| Popis: | Trade credit plays an important role in financing for many businesses and industries. For the buyers, purchased inventory can be considered to be financed in whole or in part with permissible delay in payments during the purchasing process. On the other hand, both the vendor and buyer take part in order-processing cost reduction by applying information technologies, such as EDI (electronic data interchange). The order-processing cost can also be reduced by adding certain capital investments, and this will affect the lot size decisions. This article develops an integrated inventory model to determine the optimal inventory policy under conditions of order-processing cost reduction and permissible delay in payments, and shows that the total annual variable cost function possesses some kinds of convexities. A solution procedure is provided to determine the optimal order policy. Finally, a numerical example is presented to illustrate the solution procedure. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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