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Comments on the EOQ model under retailer partial trade credit policy in the supply chain

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  • Chung, Kun-Jen

Abstract

Huang and Hsu [2007. An EOQ model under retailer partial trade credit policy in supply chain. International Journal of Production Economics, doi:10.1016/j.ijpe.2007.05.014] investigate the inventory system as a cost minimization problem to determine the retailer's optimal inventory policy under the supply chain. They develop two easy-to-use theorems to locate the optimal inventory policy for the retailer. Although their inventory models are correct and interesting, processes of arguments to derive those theorems to find the optimal inventory policy are not complete. So the main purpose of this paper is to overcome these shortcomings and present complete proofs for Huang and Hsu (2007).

Suggested Citation

  • Chung, Kun-Jen, 2008. "Comments on the EOQ model under retailer partial trade credit policy in the supply chain," International Journal of Production Economics, Elsevier, vol. 114(1), pages 308-312, July.
    • Handle: RePEc:eee:proeco:v:114:y:2008:i:1:p:308-312
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    References listed on IDEAS

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    1. Chung, Kun-Jen & Huang, Yung-Fu, 2003. "The optimal cycle time for EPQ inventory model under permissible delay in payments," International Journal of Production Economics, Elsevier, vol. 84(3), pages 307-318, June.
    2. Huang, Yung-Fu, 2007. "Optimal retailer's replenishment decisions in the EPQ model under two levels of trade credit policy," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1577-1591, February.
    3. Chung, Kun-Jen & Huang, Tien-Shou, 2007. "The optimal retailer's ordering policies for deteriorating items with limited storage capacity under trade credit financing," International Journal of Production Economics, Elsevier, vol. 106(1), pages 127-145, March.
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    Cited by:

    1. Chung, Kun-Jen & Eduardo Cárdenas-Barrón, Leopoldo & Ting, Pin-Shou, 2014. "An inventory model with non-instantaneous receipt and exponentially deteriorating items for an integrated three layer supply chain system under two levels of trade credit," International Journal of Production Economics, Elsevier, vol. 155(C), pages 310-317.
    2. Seifert, Daniel & Seifert, Ralf W. & Protopappa-Sieke, Margarita, 2013. "A review of trade credit literature: Opportunities for research in operations," European Journal of Operational Research, Elsevier, vol. 231(2), pages 245-256.
    3. Teng, Jinn-Tsair & Min, Jie & Pan, Qinhua, 2012. "Economic order quantity model with trade credit financing for non-decreasing demand," Omega, Elsevier, vol. 40(3), pages 328-335.
    4. Cai, Gangshu (George) & Chiang, Wen-Chyuan & Chen, Xiangfeng, 2011. "Game theoretic pricing and ordering decisions with partial lost sales in two-stage supply chains," International Journal of Production Economics, Elsevier, vol. 130(2), pages 175-185, April.

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