Abstract: The retailer makes payment after receiving the ordered commodities in the traditional economic order quantity (EOQ) models. It is impractical in cases in which the supplier has the power to control the risk of the cash flow. This paper therefore constructs an inventory model with a partial advance payment with added considerations for order quantities and carbon emissions. Five practical orientations are incorporated into the proposed model: (1) the opportunity costs due to making advance payments; (2) the interest charge caused by the bank loans; (3) the carbon....
Keywords:Inventory, Carbon emission, Advance payment, Quantity discounts, lot-splitting shipment
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