%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