An EOQ model with backordering for perishable items under multiple advanced and delayed payments policies. Issue 3 (3rd July 2022)

• Record Type: Journal Article
• Authors: Ghosh, Prasanta Kumar; Manna, Amalesh Kumar; Dey, Jayanta Kumar; Kar, Samarjit
• Is Part Of: Journal of management analytics. Volume 9:Issue 3(2022)
• Page Start: 403
• Page End: 434
• Publication Date: 2022-07-03
• Subjects: inventory -- perishable item -- expiry date -- advance payment -- delayed payment; Management -- Mathematical models -- Periodicals; Management -- Periodicals; Management -- Mathematical models; Management; Periodicals; 658.4033
• DOI: 10.1080/23270012.2021.1882348
• Languages: English
• ISSNs: 2327-0012

Abstract

Abstract : This study investigated an economic order quantity (EOQ) model with complete backorder for fixed lifetime perishable items under multiple advance and delayed payments policies. Here, a new type of business policy is considered where supplier offers the retailer to pay a fraction of the purchasing cost before the order delivery by multiple equal installments starting from the ordering time and the rest amount after the delivery by multiple equal installments. Here, some theoretical results are illustrated to determine the conditions of existence and uniqueness of the optimal solutions. A closed form solution is determined to solve the proposed model under approximation. Some numerical examples are provided to examine the validity of the proposed model. Finally, sensitivity analyses are presented to obtain the effect of optimal policy and provide some managerial insights of the model.