An EOQ model with holding - ordering cost reduction and partial delay in payment under credit period- dependent demand: A reversed constraint programming

Harmony and coordination among various departments ofa company can be an important factor for obtainingcompetitive advantage. For many businesses, trade creditrepresents a main section of company finance and is usedas one of coordination strategies in a company. In this study,a nonlinear model of joint partial delayed payments,pricing, and marketing strategies is presented in a supplychain including a retailer and multiple customers. Demandrate is an endogenous variable and depends on marketingcost, selling price and the length of the credit period. Toobtain better inventory management, both holding andordering costs are controllable by an added cost. Theproposed problem is formulated in two cases formaximizing the retailer’s profit and determines length of thecredit period, marketing cost, selling price, holding cost,ordering cost, purchasing cost and order quantitysimultaneously. Each case is modeled a constrainedsignomial geometric programming with 2 degrees ofdifficulty. For solving our models, we transform bothmodels to a reversed constraint programming and canobtain the optimal solutions in closed forms for each case.The applicability of this solution method is demonstrated bya numerical example.

کلیدواژه ها:

EOQ model ، Partial delay in payment ، Signomial geometric programming ، Marketing