Closed-Form Solutions for the EPQ-Based Inventory Model for Exponentially Deteriorating Items Under Retailer Partial Trade Credit Policy in Supply Chain

  • Ali Akbar Shaikh
  • Leopoldo Eduardo Cárdenas-Barrón
  • Sunil Tiwari
Technical Note
  • 19 Downloads

Abstract

Mahata (Expert Syst Appl 39(3):3537–3550, 2012) developed an economic production quantity (EPQ) inventory model for exponentially deteriorating items under permissible delay in payments considering that both demand and production are constant and known. This paper, applying well-known approximation mathematical expressions, derives closed-form formulas for the time at which the production ends, the cycle length and the total cost of inventory system. Moreover, this work presents a comparison of the solutions to the numerical examples by approximation closed-form formulas and Mahata (2012)’s method. The approximated method works properly because the percent of penalty is negligible less than 0.09%.

Keywords

Inventory EPQ Partial trade credit Supply chain Exponentially deteriorating items 

Notes

Acknowledgements

We thank the editor and anonymous reviewers for their constructive feedback on earlier draft of this paper. The Tecnológico de Monterrey Research Group in Industrial Engineering and Numerical Methods 0822B01006 supported the first and second authors.

References

  1. 1.
    Mahata, G.C.: An EPQ-based inventory model for exponentially deteriorating items under retailer partial trade credit policy in supply chain. Expert Syst. Appl. 39(3), 3537–3550 (2012)CrossRefGoogle Scholar
  2. 2.
    Pasandideh, S.H.R., Niaki, S.T.A., Nobil, A.H., Cárdenas-Barrón, L.E.: A multiproduct single machine economic production quantity model for an imperfect production system under warehouse construction cost. Int. J. Prod. Econ. 169, 203–214 (2015)CrossRefGoogle Scholar
  3. 3.
    Sarkar, B., Saren, S.: Partial trade-credit policy of retailer with exponentially deteriorating items. Int. J. Appl. Comput. Math. 1(3), 343–368 (2015)MathSciNetCrossRefGoogle Scholar
  4. 4.
    Karmakar, S., De, S.K., Goswami, A.: The bi-objective EPQ problem: fuzzy goal attainment approach. Int. J. Appl. Comput. Math. 3(1), 569–598 (2017)MathSciNetCrossRefGoogle Scholar
  5. 5.
    Nobil, A.H., Nobil, E., Cárdenas-Barrón, L.E.: Some observations to: lot sizing with non-zero setup times for rework. Int. J. Appl. Comput. Math. 3(1), 1511–1517 (2017)MathSciNetCrossRefGoogle Scholar
  6. 6.
    Nobil, A.H., Sedigh, A.H.A.: An economic production quantity inventory model with a defective production system and uncertain uptime. Int. J. Inventory Res. 4(2–3), 132–147 (2017)CrossRefGoogle Scholar
  7. 7.
    Shaikh, A.A., Cárdenas-Barrón, L.E., Tiwari, S.: Some observations on: improving production policy for a deteriorating item under permissible delay in payments with stock-dependent demand rate. Int. J. Appl. Comput. Math. 4(1), 5 (2018)MathSciNetCrossRefMATHGoogle Scholar

Copyright information

© Springer (India) Private Ltd., part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of MathematicsThe University of BurdwanBurdwanIndia
  2. 2.School of Engineering and SciencesTecnológico de MonterreyMonterreyMexico
  3. 3.The Logistics Institute-Asia PacificNational University of SingaporeSingaporeSingapore

Personalised recommendations