The Optimal Retailer’s Economic Production Quantity (EPQ) Policies with Two-Level Trade Credit under Alternate Due Date of Payment and Limited Storage Capacity

2018 ◽  
Vol 12 (6) ◽  
pp. 1073-1089 ◽  
Author(s):  
H. M. Srivastava ◽  
Ghi-Feng Yen ◽  
An-Kuo Lee ◽  
Yi-Xiu Wu ◽  
Shy-Der Lin
Keyword(s):  
Trade Credit ◽  
Storage Capacity ◽  
Due Date ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Production Quantity

scholarly journals Pemodelan Rantai Suplai Berbasis Economic Production Quantity dengan Menerapkan Kredit Perdagangan Dua Eselon

2019 ◽  
Vol 3 (1) ◽  
pp. 14
Author(s):  
Jaka Permana
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Risk Averse ◽  
Neutral Solution ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Risk Neutral ◽  
Replenishment Policy ◽  
Production Quantity ◽  
Better Than

<p><em>Implementation of the supply chain is felt more important and very useful in today’s era  of industrialization. But in the process of supply chain encountered  various  risks that may affect the flow of the supply chain so it can not run smoothly, such as interference or imperfectness  in transportations. This research  was made to propose a mathematical model for a supply chain under the effect of unexpected disruptions  in transport. Supplier/manufacturer offers the retailer  a trade credit period t<sub>1</sub> , then the retailer offers the customer a credit with a period of t<sub>2</sub>  and finally the retailer receives the revenue from t<sub>2</sub>  ke T + t<sub>2</sub> , where T is the cycle time at the retailer.  Under this situation,  the three cases such as T ≤ t<sub>1</sub> ≤ T + t<sub>2</sub> , T ≤ T + t<sub>1</sub> ≤ t<sub>2</sub>, and  t<sub>1</sub>  ≤ t<sub>2</sub> are discussed. An EPQ (Economic Production Quantity) based model is established and retailer’s optimal replenishment policy is obtained through mathematical theorems. From the results of testing on several cases, the best solution for the two procedures has been obtained, namely between risk neutral and risk averse solutions based on the level or number of items damaged/defective. If the number of items damaged is 2 units, then solution risk neutral is far better than the risk averse solution, whereas if the number of items is damaged </em> <em>3 units, then the risk averse solution is far better than the risk neutral solution.</em></p><p class="HowToCite"> </p>

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