Article ID: | iaor19992195 |
Country: | United Kingdom |
Volume: | 49 |
Issue: | 8 |
Start Page Number: | 861 |
End Page Number: | 869 |
Publication Date: | Aug 1998 |
Journal: | Journal of the Operational Research Society |
Authors: | Silver E.A., Costa D. |
This paper is devoted to the study of the effects of payment terms on the replenishment strategy. We use a discounting approach with Poisson demand, a linear inventory carrying cost and a very short replenishment lead time. The case of repeated identical payments at the end of a specified period of