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Journal of Applied Sciences
  Year: 2009 | Volume: 9 | Issue: 9 | Page No.: 1791-1794
DOI: 10.3923/jas.2009.1791.1794
 
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A Cash Flow Oriented EOQ Model with Deteriorating Items Under Permissible Delay in Payments

Kuo-Lung Hou and Li-Chiao Lin

Abstract:
This study develops an inventory model to determine an optimal ordering policy for deteriorating items with delayed payments permitted by the supplier under inflation and time discounting. This study applies the discounted cash flows approach for problem analysis. Mathematical models have been derived for obtaining the optimal cycle time and optimal payment time for item so that the annual total relevant cost is minimized. The present value of the annual total relevant cost in this inventory system is developed first, then an optimal number of replenishment, cycle time and order quantity are obtained by a solution procedure. Finally, a numerical example is given to illustrate the results.
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How to cite this article:

Kuo-Lung Hou and Li-Chiao Lin, 2009. A Cash Flow Oriented EOQ Model with Deteriorating Items Under Permissible Delay in Payments. Journal of Applied Sciences, 9: 1791-1794.

DOI: 10.3923/jas.2009.1791.1794

URL: https://scialert.net/abstract/?doi=jas.2009.1791.1794

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