EPQ models under permissible payment delay: An algebraic approach

The purpose of this research is to relax this assumption and establish the retailer's inventory system as a cost minimization problem to determine the retailer's optimal inventory cycle time. Then, an algebraic approach is provided and an easy-to-use theorem is derived to efficiently determine the optimal cycle time. From the final numerical examples, result implies that the retailer will order less quantity to take the benefits of the permissible delay in payments more frequently when the larger the differences between the unit selling price per item and the unit purchasing price per item. © 2007 Asian Network for Scientific Information.