%0 Journal Article
%T EPQ Policies Considering the Holding Cost of Raw Materials under Conditions of Two-Level Trade Credit and Limited Storage Capacity
%A Ghi-Feng Yen
%A Shy-Der Lin
%A An-Kuo Lee
%J Open Access Library Journal
%V 6
%N 1
%P 1-24
%@ 2333-9721
%D 2019
%I Open Access Library
%R 10.4236/oalib.1105140
%X
The economic production quantity model is widely used as a decision making tool. However, climate change and energy supply instability have raised the transport costs of raw materials, thereby affecting production costs. Therefore, this paper presents a new model that considers the holding costs of raw materials under conditions of two-level trade credit and limited storage capacity. Four theorems are developed to characterize the optimal solutions according to a cost-minimization strategy. Finally, a sensitivity analysis is executed to investigate the effects of the various parameters on ordering policies and the annual total relevant costs.
%K Economic Production Quantity (EPQ)
%K Raw Materials
%K Trade Credit
%K Limited Storage Capacity
%U http://www.oalib.com/paper/5302772