Closed-Form Solutions for the EPQ-Based Inventory Model for Exponentially Deteriorating Items Under Retailer Partial Trade Credit Policy in Supply Chain Academic Article in Scopus uri icon

abstract

  • © 2018, Springer (India) Private Ltd., part of Springer Nature. Mahata (Expert Syst Appl 39(3):3537¿3550, 2012) developed an economic production quantity (EPQ) inventory model for exponentially deteriorating items under permissible delay in payments considering that both demand and production are constant and known. This paper, applying well-known approximation mathematical expressions, derives closed-form formulas for the time at which the production ends, the cycle length and the total cost of inventory system. Moreover, this work presents a comparison of the solutions to the numerical examples by approximation closed-form formulas and Mahata (2012)¿s method. The approximated method works properly because the percent of penalty is negligible less than 0.09%.

publication date

  • April 1, 2018