A Determination of the Optimal Replenishment and Pricing Policies for Inventory Systems under Permissible Delay in Payment and Quantity Discounts Taking into Account the Time-Value of Money

• Main Authors: Shao-Hua Ho, 賀少華
• Other Authors: Kuo-Lung Hou
• Format: Others
• Language: zh-TW
• Published: 2002
• Online Access: http://ndltd.ncl.edu.tw/handle/11903024025892343975

碩士 === 國防管理學院 === 資源管理研究所 === 90 === ABSTRACT The figure of inventory shares the huge proportion of working capital for a company. The principal goal for many devoted researchers is to develop the optimal replenishment policy for cooperating firms. However, the assumptions of the traditional EOQ models are contradictious on the practices, for example, ignoring the characteristics of deteriorating items and soliciting the payment after goods arriving immediate, the model neglected the quantity discounts and time discounting. In the real world, many high deteriorating ratio on storage exist, such as fresh vegetables, fruits, high volatile materials, …etc. That is enough to impact the formulation of the optimal replenishment policy. And in the practical behavior of business transaction, the supplier would usually give quantity discount and permissible delay in payment for retailers. At drawing up the optimal replenishment policy, retailers promote the competitive advantages based on appropriately utilizing concessionary condition, equilibrating the relevant cost of inventory. In addition, purchasing inventory needs the investment of huge capital, stipulating the optimal replenishment policy must consider the time value of currency to represent opportunity cost. The main purpose of this dissertation is to discuss the formulation of the optimal replenishment and pricing policies on easier deteriorating articles in the permission environment of permissible delay in payment and quantity discounts based on the time value of money. This paper employs the discounted cash flow (DCF) approach on the fixed planning horizon to construct the functional model of net profit of inventory system for without backlogging and complete backlogging. The characteristics of prior function provides the law of decision making to determine the appropriate sales price, inventory cycle, order quantity, and the optimal replenishment policy. Finally, a numerical example is presented at the inventory system with undertaking the sensitivity analysis to illustrate the degree of influence of fluctuation of parameters in inventory systems for the optimal replenishment policies which provides more accurate criterion and practical principles for decision makers.