Retailer's optimal ordering policies with trade credit financing

ASIAIR > College of Management > Department of International Business > Journal Artical > Item 310904400/18154

Please use this identifier to cite or link to this item: http://asiair.asia.edu.tw/ir/handle/310904400/18154

Title:	Retailer's optimal ordering policies with trade credit financing
Authors:	詹雅嵐;Chan, Ya-Lan
Contributors:	國際企業學系
Keywords:	Finance, Inventory, EOQ, Permissible delays
Date:	2007-03
Issue Date:	2012-11-26 04:10:05 (UTC+0)
Abstract:	In this article, we extended Goyal's model to develop an Economic Order Quantity (EOQ) model in which the supplier offers the retailer the permissible delay period M, and the retailer in turn provides the trade credit period N (with N ≤ M) to his/her customers. In addition, we assume that (1) the retailer's selling price per unit is necessarily higher than its unit cost, and (2) the interest rate charged by a supplier or a bank is not necessarily higher than the retailer's investment return rate. We then establish an appropriate EOQ model with trade credit financing, and provide an easy-to-use closed-form solution to the problem. Furthermore, we find it is possible that a well-established buyer may order a lower quantity and take the benefit of the permissible delay more frequently, which contradicts to the result by the previous researchers. Finally, we perform some sensitivity analyses to illustrate the theoretical results and obtain some managerial results.
Relation:	2006 IEEE International Systems-on-Chip Conference, SOC
Appears in Collections:	[Department of International Business] Journal Artical

Files in This Item:

File	Description	Size	Format
index.html		0Kb	HTML	402	View/Open