The Research Of Eoq Models Of Deteriorating Products Under Permissible Delay In Paments

With the integration of global economic and globalization process of network information accelerate fiercely, the competition among the industries and the enterprises is becoming increasingly fierce. An enterprise wants to survive in the intense competition of economic market, it must be strengthen in the mutual cooperation with other enterprises. Delay in payment as a short-term credit means, be widely used in commercial activities. Especially in the retail industry, suppliers often provide a delaying period of payment in order to achieve continuous commercial transactions.In this paper, from the retailer's perspective, taking permissible delay in payments which the suppliers provide for retailer, the retailer who sells the deteriorating products, how to make the best decision of the order quantity and the sales cycle.This paper is studied mainly from the following two aspects:(1) Based on the existing EOQ inventory models of deteriorating products, this paper studies the retailer's ordering and sales strategy of the deteriorating products with constant deteriorating rate and demand rate under the condition of permissible delay in payments. The shortage is allowed but partial backlogging. Firstly, according to the deadline of payment which the supplier provides and the choice of permissible delay the retailer makes, several situations are discussed. In each situation, the retailer makes the corresponding optimal ordering policy to maximize his profit. Then comparing the values of maximum profits of all situations, the retailer makes the final optimal strategy. At last, a corresponding example is given for verifying the effectiveness of the model, and meanwhile analyzing the influence of related parameters on optimal value.(2) Following the previous study, a more in depth discussion of the demand dependent on the available displayed inventory is studied. In such a case, the demand rate changes with the available displayed inventory level, usually reducing. Similarly, according to the deadline the supplier providing and the choice of the retailer making whether take the delay payments and when pay the ordering payment, several situations are discussed, and simultaneously developing the corresponding goal programs. In each situation, the retailer makes the corresponding optimal ordering policy to maximize his profit. Then comparing the values of maximum profits of all situations, the retailer makes the final optimal strategy. Finally, a corresponding example is given for verifying the effectiveness of the model, and simultaneously analyzing the influence of related parameters on optimal value.