| Article ID: | iaor19942129 |
| Country: | Belgium |
| Volume: | 35 |
| Start Page Number: | 115 |
| End Page Number: | 123 |
| Publication Date: | Feb 1993 |
| Journal: | Cahiers du Centre d'tudes de Recherche Oprationnelle |
| Authors: | Shah Nita H. |
| Keywords: | finance & banking |
An inventory model is developed for exponentially decaying inventory when suppliers offer privilege to delay the payment of order quantity by some fixed time period. The appropriate cost function is derived and the equations for determining optimum cycle time are obtained. The validity of the derived model is established by numerical example.