Article ID: | iaor20071078 |
Country: | Singapore |
Volume: | 22 |
Issue: | 2 |
Start Page Number: | 211 |
End Page Number: | 227 |
Publication Date: | Jun 2005 |
Journal: | Asia-Pacific Journal of Operational Research |
Authors: | Chang Horng-Jinh, Dye Chung-Yuan |
Keywords: | deteriorating items |
In this paper, we present an inventory model for deteriorating items with time varying demand and deterioration rates when the credit period depends on the retailer's ordering quantity. We also provide simple solution procedures for finding the optimal replenishment period and show in a rigorous way that the policy suggested is indeed optimal. Further, we use numerical examples to illustrate the model and conclude the paper with suggestions for possible future research.