Article ID: | iaor20101348 |
Volume: | 124 |
Issue: | 1 |
Start Page Number: | 293 |
End Page Number: | 298 |
Publication Date: | Mar 2010 |
Journal: | International Journal of Production Economics |
Authors: | Chung Kun-Jen |
Ouyang et al. (2005) develop an inventory model with non-instantaneous receipt under trade credit, in which the supplier provides not only a permissible delay but also a cash discount to the retailer. They establish a criterion to find the optimal order cycle such that the total relevant cost per unit time is minimized. Although their inventory model is correct and interesting, their solution procedure has shortcomings such that it cannot locate all optimal order cycles. So, the main purpose of this paper will remove the shortcoming of Ouyang et al (2005) and present a solution procedure to search for the entirely optimal order cycles. Furthermore, this paper reveals an example to show that solution procedure does not work for locating the optimal order cycle to that example, however, our solution procedure does. In sum, this paper improves Ouyang et al (2005).