The Modified EOQ-Formula for Deferred Order Payments and Delays in Receipt of Revenue

Hunan Daxue Xuebao/Journal of Hunan University Natural Sciences. 2024. Vol. 51. No. 2.

Brodetskiy G., Gerami V., Shidlovskii I.

The purpose of this article is to analyse the optimisation strategy of inventory management, considering the possibility of deferred payments, delays in receiving revenue and vehicle capacity restrictions. The study is based on the modification development for the multiproduct EOQ-model that acknowledges the following factors: 1) the time value of money; 2) the possibility of deferred payment negotiated prior to placing an order; 3) specific nature of incoming payments with receipt of revenues from goods subsequent to their delivery; 4) the vehicle capacity; 5) the case of a company paying for its orders with revenues from the goods delivered. This article establishes sufficient conditions to be imposed on the length of deferred payment for the order and the acceptable delay in payment for goods making it possible to form required payments from the proceeds.

Keywords: управление цепями поставок, управление запасами, inventory management, time value of money, временная ценность денег, supply chain management, deferred order payments, отсрочка оплаты заказа, грузоподъемность транспорта, vehicle cargo capacity