Credit policies for one-time-only sales

This paper develops inventory policies acceptable to a vendor and a buyer for cases where the former offers the latter the opportunity to place a larger-than-normal order in exchange for delays in the payment date and/or in the delivery date of the items. Within this context, various scenarios are identified for which several equivalence and dominance rules are derived. In addition, bargaining ranges are developed in the form of solution sets acceptable to both parties, from which feasible agreements may be obtained. Finally, possible negotiated solutions are identified under various bargaining strategies from both parties.