PROBABILISTIC INVENTORY CONTROL MODEL UNDER TRADE CREDIT POLICY

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TALEIZADEH A.A.; SALEHI A.

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Journal: Advances in Industrial Engineering Year:2015 | Volume:49 | Issue:1 Page(s): 69-78

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Information Journal Paper

Title

PROBABILISTIC INVENTORY CONTROL MODEL UNDER TRADE CREDIT POLICY

Author(s)

TALEIZADEH A.A. | SALEHI A. | Issue Writer Certificate

Keywords

DELAYED PAYMENTQ1

INVENTORY CONTROLQ1

STOCHASTIC PERIOD LENGTHQ2

TRADE CREDITQ1

Abstract

Inventory control systems are supposed that the purchasing cost is paid at the time of delivery of product. But sometimes in order to motivate the customers to buy more, supplier lets customers to pay the purchasing cost under delay payment method as an incentive policy. In this paper a periodic INVENTORY CONTROL model is considered in which the interval between two replenishments is a random variable. Indeed the economic order quantity model is developed under two policies including DELAYED PAYMENT and stochastic replenishment interval. It is proved that the profit function of retailer is concave and the main aim of this paper is to determine the maximum level of inventory such that the profit of retailer is maximized. In continue in order to show the applicability of the proposed model, several numerical examples and sensitivity analyses have been presented.

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APA: Copy

TALEIZADEH, A.A., & SALEHI, A.. (2015). PROBABILISTIC INVENTORY CONTROL MODEL UNDER TRADE CREDIT POLICY. ADVANCES IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING), 49(1), 69-78. SID. https://sid.ir/paper/166495/en

Vancouver: Copy

TALEIZADEH A.A., SALEHI A.. PROBABILISTIC INVENTORY CONTROL MODEL UNDER TRADE CREDIT POLICY. ADVANCES IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING)[Internet]. 2015;49(1):69-78. Available from: https://sid.ir/paper/166495/en

IEEE: Copy

A.A. TALEIZADEH, and A. SALEHI, “PROBABILISTIC INVENTORY CONTROL MODEL UNDER TRADE CREDIT POLICY,” ADVANCES IN INDUSTRIAL ENGINEERING (JOURNAL OF INDUSTRIAL ENGINEERING), vol. 49, no. 1, pp. 69–78, 2015, [Online]. Available: https://sid.ir/paper/166495/en

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