scholarly journals Optimal Replenishment for Perishable Products with Inventory-Dependent Demand and Backlogging under Continuous and Discrete Progressive Payments

2018 ◽  
Vol 10 (10) ◽  
pp. 3723 ◽  
Author(s):  
Longfei He ◽  
Han Gao ◽  
Xiao Zhang ◽  
Qinpeng Wang ◽  
Chenglin Hu
Keyword(s):  
Trade Credit ◽  
Cash Flows ◽  
Future Research ◽  
Time Intervals ◽  
Ordering Policy ◽  
Replenishment Policy ◽  
Convexity Assumptions ◽  
Short Time ◽  
The Impact ◽  
Dependent Demand

Managing material and cash flows attracts concerns of physical and financial departments in most companies. We, therefore, focus on optimizing the replenishment policy for a channel with stock-dependent demand considering item deterioration and order backlogging under two financial schemes of progressive trade credit periods. We take both the continuous payment regime (CPR) and discrete payment regime (DPR) into account in the progressive trading process, which generates ten distinct scenarios. We show that the profit functions may not necessarily be concave and accordingly give a corresponding computing algorithm, which relaxes the convexity assumptions of objective functions in the existing literature and consequently enrich the research. We address the formulation characterization and the logic of pursuing global optimization from models arising in all settings. Computational studies and simulations are conducted to illustrate the effect of various parameters on the optimal replenishing policy and profit. Numerical experiments show that the CPR scheme is dominantly prior to DPR for long replenishment time intervals, whereas it is exactly the opposite for short time intervals. We also examine the impact of the shortage cost and deteriorating rate on optimum ordering policy and channel performance. Finally, future research directions are addressed in the end.

Trade credit and the speed of leverage adjustment

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ala’a Adden Abuhommous
Keyword(s):  
Trade Credit ◽  
Positive Impact ◽  
Bank Loans ◽  
Future Research ◽  
Short Term ◽  
Firm Level ◽  
Good Opportunity ◽  
Content Type ◽  
Leverage Ratio ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of trade credit on the speed of adjustment (SOA) of short-term leverage. Bankruptcy cost is higher for over-levered firms, generating a good incentive to use trade credit as a lower cost substitute; hence, firms adjust capital more quickly. Design/methodology/approach Firm-level data are used from five countries, in two different economic orientations, during the period 2000–2017: bank-oriented economies include France, Germany and Japan, and market-oriented economies include the UK and the USA. First, using the two-step GMM the study estimates the target short-term leverage ratio. Then, it examines the impact of trade credit on the SOA of the actual leverage towards the target leverage ratio. Findings It finds a positive impact of a low amount of trade credit (high capacity) on the SOA for over-levered firms. This is in line with the substitution effect, where the bankruptcy cost is higher for over-levered firms, which leads them to substitute bank loans with trade credit. Research limitations/implications The study uses data from publicly traded firms; data from non-listed and small firms may be considered as a good opportunity for future research. Practical implications The policy implication that can be derived from the empirical results is that firms’ management should recognise the relationship between trade credit and deviation from target short-term leverage. During periods of high short-term leverage firms should use trade credit as a source of finance when adjusting the short-term leverage towards the target ratio. Originality/value This study is the first to examine the influence of trade credit on the SOA.

scholarly journals Credit Redistribution by Listed Manufacturing Firms in Pakistan and the Moderating Role of Financial Depth

2020 ◽  
Vol 12 (4) ◽  
pp. 1-20
Author(s):  
Nisar Ahmad ◽  
Bilal Nafees ◽  
Abdul Rasheed
Keyword(s):  
Trade Credit ◽  
Negative Impact ◽  
Manufacturing Firms ◽  
Future Research ◽  
Data Set ◽  
Listed Firms ◽  
Financial Depth ◽  
The Impact ◽  
Moderating Role

An enhancement in the financial depth (FD) increases the availability of formal credit to firms. Resultantly credit redistribution (CR) by firms is likely to be reduced as they require less trade credit (TC). To provide evidence, how do managers respond to changes in financial depth while making adjustments in their trade credit policy, this paper aims to study the impact of financial depth on credit redistribution by listed manufacturing firms (LMFs). For the firm-level variables, we used a data set of 327 firms listed on PSX for the period 2005 to 2018. Private credit to GDP ratio and market capitalization to GDP ratio are used as proxies for financial depth. Unlike earlier studies, we applied a two-step System GMM estimator to control the endogeneity. The results of the regression analysis display a positive relationship between the use and the supply of trade credit by LMFs. It reveals that LMFs redistribute credit to their customers through trade credit channel. We found a significant and negative impact of FD on the supply of TC by LMFs. Further, we established that financial depth as a moderator has a buffering impact on the credit redistribution by listed firms. The study highlights the moderating role of FD and suggests the financial policymakers of firms to modify their credit policies in response to changes in financial depth. For future research, we suggest the investigation of the effect of financial policy interventions on credit redistribution by small and non-listed firms.

scholarly journals COVID-19 pandemic: Analyzing of spreading behavior, the impact of restrictions and prevention measures in Germany and Japan

2021 ◽  
Author(s):  
Stefan Bracke ◽  
Alicia Puls ◽  
Masato Inoue
Keyword(s):  
Research Study ◽  
Winter Season ◽  
Model Parameters ◽  
Prevention Measures ◽  
Reliability Engineering ◽  
Distribution Models ◽  
Time Intervals ◽  
Spreading Behavior ◽  
Short Time ◽  
The Impact

In December 2019, the world was confronted with the outbreak of the respiratory disease COVID-19. The COVID-19 epidemic evolved at the beginning of 2020 into a pandemic, which continues to this day. The incredible speed of the spread and the consequences of the infection had a worldwide impact on societies and health systems. Governments enforced many measures to control the COVID-19 pandemic: Restrictions (e.g. lockdown), medical care (e.g. intensive care) and medical prevention (e.g. hygiene concept). This leads to a different spreading behavior of the COVID-19 pandemic, depending on measures. Furthermore, the spreading behavior is influenced by culture and geographical impacts. The spreading behavior of COVID-19 related to short time intervals can be described by Weibull distribution models, common in reliability engineering, in a sound way. The interpretation of the model parameters allows the assessment of the COVID-19 spreading characteristics. This paper shows results of a research study of the COVID-19 spreading behavior depending on different pandemic time phases within Germany and Japan. Both countries are industrial nations, but have many differences with respect to historical development, culture and geographical conditions. Consequently, the chosen government measures have different impacts on the control of the COVID-19 pandemic. The research study contains the analyses of different pandemic time intervals in Germany and Japan: The breakout phase in spring 2020 and subsequently following waves until winter season 2020/2021.

scholarly journals Optimal replenishment policy for items with three-parameter Weibull deterioration, stock-level dependent demand and partial backlogging

2018 ◽  
Vol 28 (1) ◽  
pp. 107-121 ◽  
Author(s):  
Smaila Sanni ◽  
Polycarp Chigbu
Keyword(s):  
Inventory Level ◽  
Market Demand ◽  
Partial Backlogging ◽  
Proposed Model ◽  
Perform Sensitivity Analysis ◽  
Replenishment Policy ◽  
Managerial Implications ◽  
Real Market ◽  
The Impact ◽  
Dependent Demand

Our focus in this paper is on determining an optimal replenishment policy for items with three-parameter Weibull distribution deterioration and inventory-level dependent demand. We developed and analyzed the model under the assumption of partial backlogging. The three-parameter Weibull hazard rate captures the impact of already deteriorated items that are received into the inventory, as well as those items that may start deteriorating in future. The inventory-level demand reflects a real market demand for product whose sales is enhanced by stock on display. We study a case base examples to gain some quantitative insight into the proposed model and we perform sensitivity analysis to draw some managerial implications.

Comparative Analysis of Some Metaheuristics for Discrete-Continuous Project Scheduling with Activities of Identical Processing Rates

2016 ◽  
Vol 33 (03) ◽  
pp. 1650015 ◽  
Author(s):  
Grzegorz Waligóra
Keyword(s):  
Comparative Analysis ◽  
Project Scheduling ◽  
Net Present Value ◽  
Renewable Resource ◽  
Concave Function ◽  
Cash Flows ◽  
Future Research ◽  
Scheduling Problems ◽  
Time Intervals ◽  
Lump Sum

Discrete-continuous project scheduling problems with positive discounted cash flows and maximization of the net present value are considered. A class of these problems with an arbitrary number of discrete resources and one continuous, renewable resource is taken into account. Activities are nonpreemptable, and the processing rate of each activity is the same continuous, increasing, and concave function of the amount of the continuous resource allotted to the activity at a time. Three common payment models — lump sum payment, payments at activity completion times, and payments in equal time intervals are analyzed. Adaptations of three well-known metaheuristics — simulated annealing, tabu search, and genetic algorithm are described. The paper focuses on a comparative analysis of the metaheuristics. The algorithms are computationally compared on a basis of an extensive experiment. Some conclusions and directions for future research are pointed out.

scholarly journals The impact of COVID-19 pandemic on nitrogen dioxide levels in Nigeria

PeerJ ◽  
2021 ◽  
Vol 9 ◽  
pp. e11387
Author(s):  
Johnson Adedeji Olusola ◽  
Adebola Adekunle Shote ◽  
Rima J. Isaifan ◽  
Abdellah Ouigmane
Keyword(s):  
Air Quality ◽  
Nitrogen Dioxide ◽  
Anthropogenic Activities ◽  
Economic Status ◽  
Health Impacts ◽  
Human Beings ◽  
Time Intervals ◽  
Restrictive Measures ◽  
Short Time ◽  
The Impact

The Coronavirus disease (COVID-19) has been transmitted worldwide over a very short time after it originated in China in December 2019. In an attempt to control its spread and reduce its health impacts, several countries including those in the African continent imposed restrictive measures that was termed “lockdown”. The outcomes of this lockdown have been reported to be beneficial to air quality worldwide. The main objective of this study is to assess the impact of lockdown due to COVID-19 on nitrogen dioxide (NO2) levels over six major cities in Nigeria. Maps extracted from satellite (Sentinel-5P) were used to indicate the significant reduction in the level of NO2 in the selected cities in Nigeria during two time-intervals, pre-lockdown (December, 2019) and during lockdown (April, 2020). The results show a significant reduction in NO2 levels during the lockdown period compared with its levels during the pre-lockdown period in 2019. The reduction in NO2 concentration levels during lockdown is likely due to less traffic, social distancing and restrictions on business and human activities. There could be an element of uncertainty in the results due to seasonality, as the comparison is done with a different season. However, the magnitude of change due to lockdown is probably much higher than the seasonal variability. Although COVID-19 has negatively impacted the health and economic status of all regions worldwide, it has benefited some aspects of air quality in most countries including Nigeria. This indicates that anthropogenic activities may be managed to reduce air pollution and positively impact the health of human beings.

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