• The Journal of the Convergence on Culture Technology
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• v.5 no.1
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• pp.353-360
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• 2019

Trade credit is being used as a price discrimination strategy by the suppliers in order to increase the customer's demand. From the viewpoint of the customer, if delayed payment is allowed for a certain period of time from the supplier, the effect of reducing the inventory carrying cost will positively affect the customer's order quantity. Also, in deriving the economic order quantity(EOQ) formula, it is tacitly assumed that the customer's ordering cost is a fixed cost. However in many business transactions, the customer pays the freight cost for the transportation of his order and so, the customer's ordering cost contains not only a fixed cost but also a freight cost which is a function of the order size. Therefore, in this study, we analyzed the inventory model which considers that the customer's ordering cost contains not only a fixed cost but also a freight cost which is a function of the customer's order size when the supplier permits a delay in payments. For the analysis, it is also assumed that inventory is exhausted not only by customer's demand but also by deterioration. Investigation of the properties of an optimal solution allows us to develop an algorithm whose validity is illustrated using an example problem.

• Journal of Korean Society of Transportation
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• v.28 no.5
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• pp.91-106
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• 2010

Recently, interest in supply chain management is rising along with the increasing oil prices and traffic congestion. In particular, people started studying the issue, but realized that advantageous strategies for suppliers and retailers are not always advantageous to a carrier. Therefore, in this study the atuhors set up a simulation scenario to understand delivery vehicle routing problems under various inventory policies, namely Economic Order Quantity (EOQ) and Periodic Order Quantity (POQ) and network configurations. First, the authors made a virtual supply chain. Then they analyzed characteristics of delivery vehicle routing under various inventory policies (EOQ and POQ) and network configurations. As a result, the POQ inventory policy decreases the number of vehicles, the number of drivers, and the service time of vehicles. Also, the centralized network increases the load factor of vehicles and decreases the service time of vehicles. In other words, the centralized network and the POQ inventory policy are better for the carrier. These results show a savings of 15,556,806 won ($13,389.10) in a month: a reduction of 17%.

• The Journal of the Convergence on Culture Technology
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• v.8 no.6
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• pp.655-660
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• 2022

This paper analyzes the problem of the economic order quantity (lot size) of a retailer in a two-stage supply chain consisting of a supplier, a retailer(distributor), and a customer. In this two-stage supply chain, the supplier permits the retailer to defer payment for a certain fixed period of time for the purchase cost to be paid by the retailer as a price differentiation strategy with his competitor. In addition, in the case of customer goods such as food and grain, it is common to see that end-customer demand is generally depend on the level of inventory displayed by the retailer. From this perspective, this paper analyzes the inventory problem of retailers under the assumption that the supplier may allow a certain period to suspend payments for the purchase of goods and the end customer demand is a function of the retailer's inventory level increasing with size. In this regard, we need to analyze how much the length of the grace period for product purchase costs affect the retailer's lot-sizing policy. Therefore, we formulate the retailer's annual net profit and analyze the effect of the length of credit period on the retailer's inventory policy numerically.