Abstract
In this paper, we extend Yu-Chung Tsao and Yung-Fu Huang to construct an economic order quantity(EOQ) model under advance sales discount and partial trade credit. This EOQ model consists of one manufacturer and one retailer. We assume that the retailer has powerful decision maker. Here, some theorems and properties are obtained to efficiently determine the optimal inventory policy for the retailer. Then, we investigate the retailer's optimal cycle time and discount rate. Finally, numerical examples arc given to illustrate a new model.
