In reality, a seller (e.g., a supplier or a manufacturer) frequently offers his/her buyers trade credit (e.g., permissible delay in payment). Trade credit reduces the buyer's holding cost of inventory and hence attracts new buyers who consider it to be a type of price reduction. On the other hand, granting trade credit also increases the seller's opportunity cost (i.e., the loss of capital oppo...

This paper investigates the optimal replenishment policy under conditions of permissible delay in payments within the economic production quantity (EPQ) framework. In 1985, Goyal assumed that: (1) The unit selling price and the unit purchasing price are equal. (2) The replenishment rate is infinite. (3) At the end of the credit period, the account is settled. The retailer starts paying for high...

a r t i c l e i n f o Keywords: Supplier–retailer inventory system Trade credit Defective items Variable production This paper investigates an integrated inventory model with variable production rate and price-sensitive demand rate under two-level trade credit. The model considers two-level trade credit policy in which the retailer receives a full trade credit from its supplier, and offers part...

The ubiquitous payment problems within construction industry of China are notoriously hard to be resolved, thus lead to a series of impacts to the industry chain. Among of them, the most direct result is affecting the normal operation of contractors negatively. A wealth of research has already discussed reasons of the payment problems by introducing a number of possible improvement strategies. ...

This study develops an improved inventory model to help the enterprises to advance their profit increasing and cost reduction in a single vendor single-buyer environment with general demand curve, adjustable production rate, and imperfect reworking process under permissible delay in payments. For advancing practical use in a real world, we are concerned with the following strategy determining, ...