[1] Zhang Peng, Wang Liuqing, He Yong,. Optimal decision of retailer for replenishment cycleunder a deteriorating product supply chain [J]. Journal of Southeast University (English Edition), 2016, 32 (2): 250-257. [doi:10.3969/j.issn.1003-7985.2016.02.019]

Copy

Optimal decision of retailer for replenishment cycleunder a deteriorating product supply chain()

Share：

Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

32

Issue:

2016 2

Page:

250-257

Research Field:

Economy and Management

Publishing date:

2016-06-20

Info

Title:

Optimal decision of retailer for replenishment cycleunder a deteriorating product supply chain

Author(s):

Zhang Peng;  Wang Liuqing;  He Yong

School of Economics and Management, Southeast University, Nanjing 210096, China

Keywords:

replenishment cycle;  deteriorating product;  trade credit;  limited storage capacity

PACS:

C934

DOI:

10.3969/j.issn.1003-7985.2016.02.019

Abstract:

In order to minimize the total cost of the retailer, an optimal replenishment cycle is studied by considering the deteriorating product, two-level trade credits, the limited storage capacity of their own warehouse and credit-linked order quantity simultaneously. A two-echelon supply chain model, which consists of a supplier and a retailer, is established. Then, the retailer’s optimal replenishment cycle under all the cases are derived by using the optimization theory and method. On the basis of these, the effects of system parameters on the optimal replenishment cycle are examined by using the numerical studies. The results show that, when the retailer’s trade credit period is longer(shorter)than the customer’s trade credit period, the optimal replenishment cycle should be increased(decreased)as the retailer’s trade credit period increases; if the minimum order quantity is high(low), the optimal replenishment cycle should be increased(not changed)as the minimum order quantity increases.

References:

[1] Whitin T M. Theory of inventory management [M]. Princeton, USA: Princeton University Press, 1957:62-72.
[2] Ghare P M, Schrader G F. A model for exponentially decaying inventory [J]. Journal of Industrial Engineering, 1963, 14(5): 238-243.
[3] Wu K S, Ouyang L Y, Yang C T. An optimal replenishment policy for non-instantaneous deteriorating items with stock-dependent demand and partial backlogging [J]. International Journal of Production Economics, 2006, 101(2): 369-384. DOI:10.1016/j.ijpe.2005.01.010.
[4] Sarkar B, Saren S, Wee H M. An inventory model with variable demand, component cost and selling price for deteriorating items [J]. Economic Modelling, 2013, 30: 306-310. DOI:10.1016/j.econmod.2012.09.002.
[5] Jia T, Li X, Wang N, et al. Integrated inventory routing problem with quality time windows and loading cost for deteriorating items under discrete time [J]. Mathematical Problems in Engineering, 2014, 2014: 1-14. DOI:10.1155/2014/537409.
[6] Ghiami Y, Williams T. A two-echelon production-inventory model for deteriorating items with multiple buyers [J]. International Journal of Production Economics, 2015, 159: 233-240. DOI:10.1016/j.ijpe.2014.09.017.
[7] Ouyang L Y, Wu K S, Yang C T. A study on an inventory model for non-instantaneous deteriorating items with permissible delay in payments [J]. Computers & Industrial Engineering, 2006, 51(4): 637-651. DOI:10.1016/j.cie.2006.07.012.
[8] Soni H, Shah N H. Optimal ordering policy for stock-dependent demand under progressive payment scheme [J]. European Journal of Operational Research, 2008, 184(1): 91-100.
[9] Huang Y F. Optimal retailer’s ordering policies in the EOQ model under trade credit financing [J]. Journal of the Operational Research Society, 2003, 54(9): 1011-1015. DOI:10.1057/palgrave.jors.2601588.
[10] Jaggi C K, Aggarwal K K, Goel S K. Retailer’s optimal ordering policy under two stage trade credit financing [J]. Advanced Modeling and Optimization, 2007, 9(1): 67-80.
[11] Mahata G C. An EPQ-based inventory model for exponentially deteriorating items under retailer partial trade credit policy in supply chain [J]. Expert Systems with Applications, 2012, 39(3): 3537-3550. DOI:10.1016/j.eswa.2011.09.044.
[12] Huang Y F. Economic order quantity under conditionally permissible delay in payments [J]. European Journal of Operational Research, 2007, 176(2): 911-924. DOI:10.1016/j.ejor.2005.08.017.
[13] Chen S C, Cárdenas-Barrón L E, Teng J T. Retailer’s economic order quantity when the supplier offers conditionally permissible delay in payments link to order quantity [J]. International Journal of Production Economics, 2014, 155: 284-291. DOI:10.1016/j.ijpe.2013.05.032.
[14] Liang Y, Zhou F. A two-warehouse inventory model for deteriorating items under conditionally permissible delay in payment [J]. Applied Mathematical Modelling, 2011, 35(5): 2221-2231. DOI:10.1016/j.apm.2010.11.014.

Memo

Memo:

Biographies: Zhang Peng(1983—), male, doctor; He Yong(corresponding author), male, doctor, professor, hy@seu.edu.cn.
Foundation item: The National Natural Science Foundation of China(No.71371003, 71001025, 71390333).
Citation: Zhang Peng, Wang Liuqing, He Yong.Optimal decision of retailer for replenishment cycle under a deteriorating product supply chain[J].Journal of Southeast University(English Edition), 2016, 32(2):250-257.doi:10.3969/j.issn.1003-7985.2016.02.019.

Common functions