Bounds on the Optimum Order Quantity of the EOQ Model with Deteriorating Items under Supplier Credit Linked to Order Quantity

摘要

Chang et al. [6] proposed an EOQ model for deteriorating items, in which the supplier provides a permissible delay in payment to the purchaser if the order quantity is greater than or equal to a predetermined quantity. In addition, they discussed a special case, in which the item is in its maturity stage (i.e. D(t) = D) and has low deterioration rate (i.e. θ(t) = θ). The purpose of this paper is to give bounds for the optimal replenishment time interval in the above case. With these bounds, a simple algorithm to locate optimal replenishment time interval without any restriction and assumption will be developed. Further, numerical examples are given to compare the proposed method with Changs' solution. The results show that the given algorithm is simple and accurate.