Retailer's optimal ordering policies with trade credit financing

2007 ◽  
Vol 38 (3) ◽  
pp. 269-278 ◽  
Author(s):  
Jinn-Tsair Teng ◽  
Chun-Tao Chang ◽  
Maw-Sheng Chern ◽  
Ya-Lan Chan
2013 ◽  
Vol 2013 ◽  
pp. 1-22 ◽  
Author(s):  
Yong He ◽  
Hongfu Huang

Trade credit financing is a useful tool in business today, which can be characterized as the agreement between supply chain members such as permissible delay in payments. In this study, we assume that the items have the property of noninstantaneous deterioration and the demand is a function of downstream credit. Then, an EOQ model for noninstantaneous deterioration is built based on the two-level financing policy. The purpose of this paper is to maximize the total average profit by determine the optimal downstream credit period, the optimal replenishment cycle length, and the optimal ordering quantity per cycle. Useful theorems are proposed to characterize the method of obtaining the optimal solutions. Based on the theorems, an algorithm is designed, and numerical tests and sensitive analysis are provided. Lastly, according to the sensitive analysis, managerial insights are proposed.


OPSEARCH ◽  
2010 ◽  
Vol 47 (4) ◽  
pp. 293-310 ◽  
Author(s):  
Chandra K. Jaggi ◽  
Mona Verma

2009 ◽  
Vol 30 (1) ◽  
pp. 135-155
Author(s):  
Yu-Cheng Tu ◽  
Kun-Jen Chung ◽  
Yung-Fu Huang ◽  
Ming-Horng Hwang

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