The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate
This paper investigates the optimal replenishment policy for the retailer with the ramp type demand and demand dependent production rate involving the trade credit financing, which is not reported in the literatures. First, the two inventory models are developed under the above situation. Second, th...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2014-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2014/839418 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832564312403607552 |
|---|---|
| author | Juanjuan Qin Weihua Liu |
| author_facet | Juanjuan Qin Weihua Liu |
| author_sort | Juanjuan Qin |
| collection | DOAJ |
| description | This paper investigates the optimal replenishment policy for the retailer with the ramp type demand and demand dependent production rate involving the trade credit financing, which is not reported in the literatures. First, the two inventory models are developed under the above situation. Second, the algorithms are given to optimize the replenishment cycle time and the order quantity for the retailer. Finally, the numerical examples are carried out to illustrate the optimal solutions and the sensitivity analysis is performed. The results show that if the value of production rate is small, the retailer will lower the frequency of putting the orders to cut down the order cost; if the production rate is high, the demand dependent production rate has no effect on the optimal decisions. When the trade credit is less than the growth stage time, the retailer will shorten the replenishment cycle; when it is larger than the breakpoint of the demand, within the maturity stage of the products, the trade credit has no effect on the optimal order cycle and the optimal order quantity. |
| format | Article |
| id | doaj-art-1a4d6fa695924032910786f6e345ea7a |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2014-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-1a4d6fa695924032910786f6e345ea7a2025-02-03T01:11:17ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/839418839418The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production RateJuanjuan Qin0Weihua Liu1Business School, Tianjin University of Finance and Economics, Tianjin 300222, ChinaCollege of Management and Economics, Tianjin University, Tianjin 300222, ChinaThis paper investigates the optimal replenishment policy for the retailer with the ramp type demand and demand dependent production rate involving the trade credit financing, which is not reported in the literatures. First, the two inventory models are developed under the above situation. Second, the algorithms are given to optimize the replenishment cycle time and the order quantity for the retailer. Finally, the numerical examples are carried out to illustrate the optimal solutions and the sensitivity analysis is performed. The results show that if the value of production rate is small, the retailer will lower the frequency of putting the orders to cut down the order cost; if the production rate is high, the demand dependent production rate has no effect on the optimal decisions. When the trade credit is less than the growth stage time, the retailer will shorten the replenishment cycle; when it is larger than the breakpoint of the demand, within the maturity stage of the products, the trade credit has no effect on the optimal order cycle and the optimal order quantity.http://dx.doi.org/10.1155/2014/839418 |
| spellingShingle | Juanjuan Qin Weihua Liu The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate Discrete Dynamics in Nature and Society |
| title | The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate |
| title_full | The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate |
| title_fullStr | The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate |
| title_full_unstemmed | The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate |
| title_short | The Optimal Replenishment Policy under Trade Credit Financing with Ramp Type Demand and Demand Dependent Production Rate |
| title_sort | optimal replenishment policy under trade credit financing with ramp type demand and demand dependent production rate |
| url | http://dx.doi.org/10.1155/2014/839418 |
| work_keys_str_mv | AT juanjuanqin theoptimalreplenishmentpolicyundertradecreditfinancingwithramptypedemandanddemanddependentproductionrate AT weihualiu theoptimalreplenishmentpolicyundertradecreditfinancingwithramptypedemandanddemanddependentproductionrate AT juanjuanqin optimalreplenishmentpolicyundertradecreditfinancingwithramptypedemandanddemanddependentproductionrate AT weihualiu optimalreplenishmentpolicyundertradecreditfinancingwithramptypedemandanddemanddependentproductionrate |