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Short-term financing of economic order quantity (EOQ) inventory model with probabilistic quality

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dc.contributor.author Arayssi, Mahmoud
dc.contributor.author Yassine, Noura
dc.date.accessioned 2016-05-19T13:18:58Z
dc.date.available 2016-05-19T13:18:58Z
dc.date.copyright 2014 en_US
dc.identifier.issn 1548-6583 en_US
dc.identifier.uri http://hdl.handle.net/10725/3853
dc.description.abstract In this paper, the classical economic order quantity (EOQ) inventory model assumption that all items of a certain product received from a supplier are of perfect quality is relaxed. Another basic assumption that the payment for the items is made at the beginning of the inventory cycle when they are received is also eased. We consider an inventory situation where items received from the supplier are of two types of quality, perfect and imperfect, and a short deferral in payment is allowed. The split between perfect and imperfect quality items is assumed to follow a known probability distribution. Both qualities of items have continuous demands, and items of imperfect quality are sold at a discount. A mathematical model is developed using the net present value of all cash flows involved in the inventory cycle. A numerical method for obtaining the optimal order quantity is presented, and the impact of the short-term financing is analyzed. An example is presented to validate the equations and illustrate the results. en_US
dc.language.iso en en_US
dc.title Short-term financing of economic order quantity (EOQ) inventory model with probabilistic quality en_US
dc.type Article en_US
dc.description.version Published en_US
dc.author.school SAS en_US
dc.author.idnumber 199629330 en_US
dc.author.department Department of Finance and Accounting (FINA) en_US
dc.description.embargo N/A en_US
dc.relation.journal Journal of Modern Accounting and Auditing en_US
dc.journal.volume 10 en_US
dc.journal.issue 7 en_US
dc.article.pages 793-802 en_US
dc.keywords Economic order quantity (EOQ) en_US
dc.keywords Imperfect quality items en_US
dc.keywords Continuous demand en_US
dc.keywords Allowed deferred payment en_US
dc.keywords Net present value en_US
dc.keywords Financing policies en_US
dc.keywords Operations planning en_US
dc.identifier.ctation Arayssi, M., & Yassine, N. (2014). Short-Term Financing of Economic Order Quantity (EOQ) Inventory Model With Probabilistic Quality. Journal of Modern Accounting and Auditing, 10(7). en_US
dc.author.email mahmoud.araissi@lau.edu.lb
dc.identifier.tou http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php en_US
dc.identifier.url http://search.proquest.com/openview/3ba9d98210a4833aa4a3fdf386bebc4f/1?pq-origsite=gscholar en_US
dc.orcid.id https://orcid.org/0000-0002-1816-8835


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