Retailer's lot-sizing policy under partially funded permissible delay in payments

Abstract

In this paper we deal with the problem of determining the economic ordering policy for an inventory item for which the supplier only offers partial delay payment to the buyer on the permissible credit period and the rest of the total amount is payable at the time the buyer places a replenishment order. We prove two theorems to find the retailer's lot-sizing policy. Finally, numerical examples are given to illustrate these theorems.

Keywords and phrases:

• EOQ
• inventory
• partially funded permissible delay in payments
• trade credit