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Growing Science » Uncertain Supply Chain Management » An EOQ model with variable holding cost and partial backlogging under credit limit policy and cash discount

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Uncertain Supply Chain Management

ISSN 2291-6830 (Online) - ISSN 2291-6822 (Print)
Quarterly Publication
Volume 5 Issue 1 pp. 27-42 , 2017

An EOQ model with variable holding cost and partial backlogging under credit limit policy and cash discount Pages 27-42 Right click to download the paper Download PDF

Authors: Mohit Rastogi, S.R. Singh, Prashant Kushwah, Shilpy Tayal

DOI: 10.5267/j.uscm.2016.8.002

Keywords: Price sensitive demand, Variable holding cost, Permissible delay, Cash discount

Abstract: In this paper we develop an inventory model for deteriorating items with price sensitive demand. Generally the vendor offers a cash discount or fix time period to the retailer to pay all the dues. According to the availability of money the retailer chooses his/her option. In this paper we discuss the possible cases of permissible delay and cash discount. The shortages are allowed in this model and are partially backlogged. Holding cost is considered as varying function of time, which reflects a more realistic concept. The purpose of this study is to optimize the overall cost of the system and to compute optimal ordering quantity. Numerical examples for different cases are also presented to illustrate the study. A sensitivity analysis with regard to distinct associated parameters is shown to make sure the constancy of the model.

How to cite this paper
Rastogi, M., Singh, S., Kushwah, P & Tayal, S. (2017). An EOQ model with variable holding cost and partial backlogging under credit limit policy and cash discount.Uncertain Supply Chain Management, 5(1), 27-42.

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Journal: Uncertain Supply Chain Management | Year: 2017 | Volume: 5 | Issue: 1 | Views: 3500 | Reviews: 0

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