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, Volume 5, Issue 2, pp 297–305 | Cite as

Probabilistic order level system with lead time when delay in payments are permissible

  • Nita H. Shah
Article

Abstract

The probabilistic order level inventory model with lead time when shortages are permitted is developed whe supplier allows some credit periodT * for setting the accounts for the purchase quantity. The scheduling periodT is known. Mathematical models are derived for both the cases: i)T *T and ii)T *>T. Expressions are derived for average expected total cost of the system and for obtaining optimum order levelZ=Z 0 under each case.

Keywords

Lead Time Inventory Model Sales Revenue Schedule Period Order Level 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. Chad S. and J. Ward (1987). A note on “Economic order quantity under conditions of permissible delay in payments”.Journal Operational Research Society 38, 83–84.CrossRefGoogle Scholar
  2. Goyal S.K. (1985). Economic order quantity under conditions of permissible delay in payments.Journal Operational Research Society 36, 335–338.CrossRefGoogle Scholar
  3. Hadley G. and T.M. Whitin (1963).Analysis of inventory systems. Prentice Hall, Eaglewood Cliffs, N.J..Google Scholar
  4. Mandal, B.N. and S. Phaujdar (1989). Some EOQ models under permissible delay in payments.International Journal of Management and system 5(2), 99–108.Google Scholar
  5. Nadoor: Inventory systems, 152–153.Google Scholar
  6. Shah, V.R., H.C. Patel and D.K. Shah (1988). Economic ordering quantity when delay in payments of order and shortages are permitted.Gujarat Statistical Review,15 (2), October, 51–56.Google Scholar

Copyright information

© Sociedad de Estadística e Investigación Operativa 1997

Authors and Affiliations

  • Nita H. Shah
    • 1
  1. 1.Gujarat UniversityAhmedabadIndia

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