INVENTORY POLICY UNDER DIFFERENT TIME OF PAYMENT, PARTIAL PAYMENT AND DISCOUNT

• Main Author: JUNIAR (NIM : 23410054); Pembimbing : Dr. Ir. Anas Ma‘ruf, AHMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/14739
• Institution: Institut Teknologi Bandung

The EOQ models assume that company must be paid as soon as goods were received. But in fact, some suppliers offer diferrent payment terms. Goyal (1985) and Teng (2002) develop permissble delay in payment model. Ouyang, et. al. (2002) and Chang (2002) develop inventory model under conditions of cash discount and compared with delayed payment. Huang (2005) develop partial payment. In Huang model, partial payment must be paid by company when order is received. Then, the company must pay off the remaining balance at the end of <br /> <br /> <br /> delay period. <br /> <br /> <br /> In the real conditions, it is likely that the company also obtained a supply of goods from multple suppliers with the same quality but propose different payment terms. The research produced 2 models of inventory. The permissble delay in payment by considering lead time and selling price parameter. The second is advance payment model in which the supplier requires down payment upon booking and the remaining balance must be paid when the goods are received. The advance payment inventory model also provide discounted price. <br /> <br /> <br /> The study was able to recommend which model that could minimize total inventory costs during the planning horizon and their impact on inventory policies. When the same parameters of both models were given while credits <br /> <br /> <br /> duration and discounts was changed, then a fact obtained. On inventory policy view point, the delay in payment model always produce smaller quantity order than advance payment model. The delay in payment model also produce shorter replenishment time interval than advance payment model. With regard to the total inventory cost, the delay in payments model is not always lower than the advance payment models. Total inventory cost depends on credit duration, discount and down payment parameter.