Article ID: | iaor20041469 |
Country: | United Kingdom |
Volume: | 54 |
Issue: | 9 |
Start Page Number: | 1011 |
End Page Number: | 1015 |
Publication Date: | Sep 2003 |
Journal: | Journal of the Operational Research Society |
Authors: | Huang Y.-F. |
Keywords: | economic order |
The main purpose of this note is to modify the assumption of the trade credit policy in previously published results to reflect the real-life situations. All previously published models implicitly assumed that the supplier would offer the retailer a delay period, but the retailer would not offer the trade credit period to his/her customer. In most business transactions, this assumption is debatable. In this note, we assume that the retailer also adopts the trade credit policy to stimulate his/her customer demand to develop the retailer's replenishment model. Furthermore, we assume that the retailer's trade credit period offered by supplier