Retailer’s Ordering and Discounting Policies Under Advance Sales Discount and Trade Credit Based on Sharia
DOI:
https://doi.org/10.11113/jt.v59.2575Keywords:
Conventional model, sharia principle, Bai Al Istishna, credit period, price discountAbstract
The use of conventional model to minimize the inventory cost creates a disturbance between the sellers and buyers. It creates a usury since the payment conducts to interest paid and interest earned. In this paper, sharia principle is implemented, that is Bai Al Istishna which allows credit period and margin agreement as the payment. The model is engaged to replenishment cycle time and price discount policy to attract the customer’s demand which based on sharia principle. This paper provides a useful mathematical model based on sharia principles in order to usury/interest can be eliminated in the trading process.References
Tsao, Y. C. 2009. Retailer’s Optimal Ordering and Discounting Policies Under Advance Sales Discount and Trade Credits. Computers and Industrial Engineering. 56: 208–215.
Huang, Y. F. 2007. Economic Order Quantity Under Conditionally Permissible Delay In Payments. European Journal of Operational Research. 176: 911–924.
Thangam, A. & R. Uthayakumar. 2009. Two-Echelon Trade Credit Financing for Perishable Items in a Supply Chain When Demand Depends on Both Selling Price and Credit Period. Computers and Industrial Engineering. 57: 773–786.
Ouyang, L. Y., J. T. Teng, K. W. Chuang & B. R. Chuang. 2011.Optimal Inventory Policy with Noninstantaneous Receipt Under Trade Credit. International Journal of Production Economics. 98: 290–300.
Chung, K. J. & S. Lin. 2011. The Inventory Model for Trade Credit in Economic Ordering Policies of Deteriorating Items in a Supply Chain System. Applied Mathematical Modelling. 35: 3111–3115.
Huang, Y. F. 2006. An Inventory Model Under Two Levels of Trade Credit and Limited Storage Space Derived without Derivatives. Applied Mathematical Modeling. 30: 418–436.
Huang, Y. F. 2003. Optimal Retailer’s Ordering Policies In The EOQ Model Under Trade Credit Financing. Journal Operational Research. 54: 1011–1015.
Jaggi, C. K., S. K. Goyal, & S. K. Goe. 2008. Retailer’s Optimal Replenishment Decisions With Credit-Linked Demand Under Permissible Delay In Payments. European Journal of Operational Research. 190: 130–135.
Chung, K. J. 2011. The Simplified Solution Procedures for the Optimal Replenishment Decisions Under Two Levels of Trade Credit Policy Depending on the Order Quantity in a Supply Chain System. Expert Systems with Applications. 38: 13482–13486.
Huang, Y. F & K. H. Hsu. 2008. An EOQ Model Under Retailer Partial Trade Credit Policy in Supply Chain. International Journal of Production Economics. 112: 655–664.
Tsao, Y. C. & G. J. Sheen. 2010. A Multi–Item Supply Chain with Credit Periods and Weight Freight Cost Discount. Submitted to International Journal Production Economics. In press
Huang, Y. F. 2007. Optimal Retailer’s Replenishment Decisions in the EPQ Model Under Two Levels of Trade Credit Policy. Production, Manufacturing and Logistics. 176: 1577–1591.
Liao, J. J. 2007. On An EPQ Model for Deteriorating Items Under Permissible Delay In Payments. Applied Mathematical Modelling. 31: 393–403.
Hu, F. & D. Liu. 2010. Optimal Replenishment Policy for the EPQ Model with Permissible Delay in Payments and Allowable Shortages. Applied Mathematical Modelling. 34: 3108–3117.
Kreng, V. B., & S. J. Tan. 2010. The Optimal Replenishment Decisions Under Two Levels of Trade Credit Policy Depending on the Order Quantity. Expert Systems with Applications. 37: 5514–5522.
Dede, K. S., S. Kurnia, A. Syarifuddin & S, Chairul. 2008. The Rule of Financial Syariah Toward Continuous Review Inventory Model with Delay in Payment. Proceeding joint seminar. Japan-Indonesia Seminar on Technology Transfer and National Seminar on Industrial Systems Planning. ISBN: 978-979-17756-0-1 (2008).
Antonio, M. S. 2001. Bank Syariah dari Teori Ke Praktik (Gema Insani Press, Jakarta).
Wiroso. 2005. Jual beli Murabahah (UII press, Yogyakarta).
Al Quran, Al Baqarah: 275.
Downloads
Published
Issue
Section
License
Copyright of articles that appear in Jurnal Teknologi belongs exclusively to Penerbit Universiti Teknologi Malaysia (Penerbit UTM Press). This copyright covers the rights to reproduce the article, including reprints, electronic reproductions, or any other reproductions of similar nature.
