A simple method to investigate retailer's ordering policy for the EPQ model under trade credit derived without calculus

摘要

Huang and Huang [International Journal of Systems Science, Vol. 39 (2008), pp. 539-546] offered the algebraic approach to investigate the retailer's replenishment policy under trade credit on the economic production quantity (EPQ) model. In this paper, we propose an arithmetic-geometric mean inequality method to simplify the algebraic method of completing perfect square established by Huang and Huang (2008) to find the optimal solution under the annual total relevant cost minimized. The proposed method is easy-to-understand and simple-to-use.