Description

C.-T. Chang, L.-Y. Ouyang, and J.-T. Teng, “An EOQ model for deteriorating items under supplier credit linked to ordering quantity [J],” Applied Mathematical Modelling, Vol. 27, pp. 983–996, 2003.

“C.-T. Chang, L.-Y. Ouyang, and J.-T. Teng, “An EOQ model for deteriorating items under supplier credit linked to ordering quantity [J],” Applied Mathematical Modelling, Vol. 27, pp. 983–996, 2003”

In the realm of supply chain management and inventory control, the Economic Order Quantity (EOQ) model has long been a cornerstone of decision-making for businesses. The EOQ model is a mathematical formula used to determine the optimal quantity of a product to order, with the goal of minimizing costs. However, traditional EOQ models often assume that the items in inventory do not deteriorate over time, which is not always the case in real-world scenarios. This is where the work of C.-T. Chang, L.-Y. Ouyang, and J.-T. Teng comes in, as they developed an EOQ model that takes into account deteriorating items under supplier credit linked to ordering quantity.

The model developed by Chang, Ouyang, and Teng, as published in the Applied Mathematical Modelling journal in 2003, is a significant contribution to the field of inventory management. By incorporating the concept of deteriorating items, the model provides a more realistic representation of the inventory management process. Deteriorating items, such as perishable goods or products with a limited shelf life, require special consideration when it comes to inventory management. The model takes into account the fact that these items will deteriorate over time, and that the supplier credit is linked to the ordering quantity. This means that the model can help businesses determine the optimal ordering quantity, taking into account the trade-off between the cost of holding inventory and the cost of losing items due to deterioration.

The implications of this model are significant for businesses that deal with deteriorating items. By using this model, companies can optimize their inventory management processes, reducing costs and improving efficiency. For example, a company that sells perishable goods, such as food or pharmaceuticals, can use this model to determine the optimal ordering quantity, taking into account the rate of deterioration and the supplier credit terms. This can help the company reduce waste, improve customer satisfaction, and increase profitability. Additionally, the model can be used in a variety of industries, including retail, manufacturing, and healthcare, making it a valuable tool for businesses that want to improve their inventory management practices.

In terms of keywords, this model is relevant to topics such as inventory management, supply chain management, EOQ model, deteriorating items, supplier credit, and mathematical modeling. The model’s development and publication in 2003 marked an important milestone in the field of inventory management, and its relevance continues to this day. As businesses continue to look for ways to optimize their operations and improve their bottom line, models like this one will remain essential tools for making informed decisions. By incorporating the latest research and developments in the field, businesses can stay ahead of the curve and achieve their goals in an ever-changing marketplace. Overall, the work of Chang, Ouyang, and Teng is an important contribution to the field of inventory management, and their model remains a valuable resource for businesses looking to improve their inventory management practices.