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Mathematical and Computational Applications is published by MDPI from Volume 21 Issue 1 (2016). Previous articles were published by another publisher in Open Access under a CC-BY (or CC-BY-NC-ND) licence, and they are hosted by MDPI on mdpi.com as a courtesy and upon agreement with Association for Scientific Research (ASR).
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Article

Optimal Retailer’s Inventory Policy Under Supplier Credits Linked to Retailer Payment Time

by
Yung-Fu Huang
1,* and
Kuang-Hua Hsu
2,*
1
Department of Business Administration, Chaoyang University of Technology, Taichung, Taiwan, R.O.C.
2
Department of Finance, Chaoyang University of Technology, Taichung, Taiwan, R.O.C.
*
Authors to whom correspondence should be addressed.
Math. Comput. Appl. 2007, 12(2), 77-86; https://doi.org/10.3390/mca12020077
Published: 1 August 2007
Versions Notes

Abstract

This paper wants to investigate the retailer’s optimal cycle time and optimal payment time under supplier credits including conditionally permissible delay in payments and cash discount depending on retailer payment time. That is, the retailer can obtain fully permissible delay in payments and cash discount if the payment is paid before the period of full delay payments permitted by the supplier. Otherwise, the retailer will just obtain partially permissible delay in payments within the period of partial delay payments permitted by the supplier. The supplier uses this policy to attract retailer to pay the payment as soon as possible to shorten the collection period. One theorem is developed to efficiently determine the optimal replenishment and payment policy for the retailer.
Keywords: Inventory; Optimization; Permissible delay in payment; Cash discount Inventory; Optimization; Permissible delay in payment; Cash discount

Share and Cite

MDPI and ACS Style

Huang, Y.-F.; Hsu, K.-H. Optimal Retailer’s Inventory Policy Under Supplier Credits Linked to Retailer Payment Time. Math. Comput. Appl. 2007, 12, 77-86. https://doi.org/10.3390/mca12020077

AMA Style

Huang Y-F, Hsu K-H. Optimal Retailer’s Inventory Policy Under Supplier Credits Linked to Retailer Payment Time. Mathematical and Computational Applications. 2007; 12(2):77-86. https://doi.org/10.3390/mca12020077

Chicago/Turabian Style

Huang, Yung-Fu, and Kuang-Hua Hsu. 2007. "Optimal Retailer’s Inventory Policy Under Supplier Credits Linked to Retailer Payment Time" Mathematical and Computational Applications 12, no. 2: 77-86. https://doi.org/10.3390/mca12020077

APA Style

Huang, Y.-F., & Hsu, K.-H. (2007). Optimal Retailer’s Inventory Policy Under Supplier Credits Linked to Retailer Payment Time. Mathematical and Computational Applications, 12(2), 77-86. https://doi.org/10.3390/mca12020077

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