Optimal Ordering Policy Under Acceptance Sampling Plan and Trade Credit Financing
نویسندگان
1 Department of Mechanical Engineering,Los Angeles
doi
چکیده
Acceptance of sampling plans and trade credit has become increasingly common in today's business. These two issues should be considered simultaneously when determining an ordering decision. This paper uses EOQ to model the decision under the acceptance sampling plan and trade credit; meaning, how often it would be necessary to order to minimize the total related cost. We develop theorems based on optimum lemmas to solve the problem. Computational analyses are given to illustrate the solution procedures and we discuss the in uence of credit period, acceptance sampling plan, holding cost and ordering cost on the total cost, and the ordering decision. We conclude with a computational analysis that leads to a variety of managerial insights.