Some Mathematical Analytic Arguments for Determining Valid Optimal Lot Size for Deteriorating Items with Limited Storage Capacity under Permissible Delay in Payments

Authors

Jui-Jung Liao, Department of Business Administration, Chihlee University of Technology, Taipei 22050, Taiwan, Republic of China.Follow
Kuo-Nan Huang, Department of Industrial Engineering and Management, St. John’s University, Tamsui 25135, Taiwan, Republic of China.Follow
Kun-Jen Chung, Chung Yuan Christian University, Chung-Li 32023, Taiwan, Republic of China.\\ National Taiwan University of Science and Technology, Taipei 10607, Taiwan, Republic of China.\\ Department of International Business Management, Shih Chien University, Taipei 10462, Taiwan, Republic of China.Follow
Pin-Shou Ting, Department of International Business Management, Shih Chien University, Taipei 10462, Taiwan, Republic of China.Follow
Shy-Der Lin, Departments of Applied Mathematics and Business Administration, Chung Yuan Christian University, Chung-Li 32023, Taiwan, Republic of China.Follow
H. M. Srivastava, Department of Mathematics and Statistics, University of Victoria, Victoria, British Columbia V8W 3R4, Canada.\\ China Medical University, Taichung 40402, Taiwan, Republic of China.Follow

Author Country (or Countries)

Republic of China.

Abstract

In the year 2011, Y. Liang and F. Zhou presented an inventory model with two levels of storages, in which one has finite dimension and the other has infinite dimension, and with conditionally permissible delay in payments. In essence, it concentrated on the establishment of the inventory model, but did not concentrate on the validity of the processes of finding the optimal solution from the viewpoint of logic. In addition, it ignored whether the case of the trade credit period, M, is greater than the time interval and whether the order quantity is greater thanW units or not, so the discussion of the optimal solution is questionable. The main purpose of this paper is to characterize the optimal solutions in accordance with the functional behavior of the total average cost under different circumstances, not only to overcome the shortcomings in the aforementioned work of Y. Liang and F. Zhou, but also to obtain accurate and reliable solution procedures. Finally, numerical examples are given to illustrate the theoretical results and the sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out to reveal the exact results.

Digital Object Identifier (DOI)

http://dx.doi.org/10.18576/amis/100309

Recommended Citation

Liao, Jui-Jung; Huang, Kuo-Nan; Chung, Kun-Jen; Ting, Pin-Shou; Lin, Shy-Der; and M. Srivastava, H. (2016) "Some Mathematical Analytic Arguments for Determining Valid Optimal Lot Size for Deteriorating Items with Limited Storage Capacity under Permissible Delay in Payments," Applied Mathematics & Information Sciences: Vol. 10: Iss. 3, Article 9.
DOI: http://dx.doi.org/10.18576/amis/100309
Available at: https://digitalcommons.aaru.edu.jo/amis/vol10/iss3/9