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Ordering policy for stock-dependent demand rate under progressive payment scheme: a comment |
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| Authors: | Christoph H Glock Jörg M Ries Kurt Schwindl |
| Affiliation: | 1. Department of Law and Economics, Technische Universit?t Darmstadt, Darmstadt, Germanyglock@bwl.tu-darmstadt.de;3. Department of Law and Economics, Technische Universit?t Darmstadt, Darmstadt, Germany;4. Department of Business and Industrial Engineering, University of Applied Sciences Würzburg-Schweinfurt, Schweinfurt, Germany |
| Abstract: | In a recent paper, Soni and Shah developed a model for finding the optimal ordering policy for a retailer facing stock-dependent demand and a supplier offering a progressive payment scheme. In this comment, we correct several errors in the formulation of the models of Soni and Shah and modify some assumptions to increase the model's applicability. Numerical examples illustrate the benefits of our modifications. |
| Keywords: | economic order quantity (EOQ) stock-dependent demand progressive credit periods trade credit |