Economic order quantity of deteriorating items under permissible delay in payments

The economic ordering policy of deteriorating items under a permissible delay in payments is presented in this paper. The inventory system discussed here is the same as that of Aggarwal and Jaggi. At first, this paper shows that the total variable cost per unit time is piecewise-convex. Then, with the piecewise convexity, a solution procedure is developed to improve that described by Aggarwal and Jaggi. Numerical examples are also given to illustrate the solution procedure.