Retailer''s Economic Order Quantity under Two Levels of Trade Credit and Cash Discount

• Main Authors: Hung-Ju Liao, 廖鴻儒
• Other Authors: Yung-Fu Huang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/s6gph6

碩士 === 朝陽科技大學 === 企業管理系碩士班 === 93 === In order to operating permanently under high competitive environment, enterprises have to increase revenue and economize cost effectively. Inventory is an important asset, managers therefore face not only decrease inventory to lower cost and prepare goods to satisfy customers’ needs, but also aim at real transaction to control inventory. Traditional EOQ model implies that retailers must be paid for the items as soon as the items are received. However, in fact the supplier will offer the retailer a delay period, and retailer also gives customer a period of time which shorter than supplier gives retailer. This is trade credit.Besides, supplier give retailer a cash discount to attract retailer paid cash earlier. This paper establishes three different functions which reflect the real trade model. One is retailer decide to pay in cash discount period time which shorter than customer’s trade credit given by retailer. Another is retailer decide to pay in cash discount period time which longer than customer’s trade credit given by retailer. The other is retailer decide to pay in trade credit. Conclusion three different situations define two theories which can develop retailer’s decision. This paper also changes some factors to observe results change. With those procedures, we obtain some decision rules or optimal replenishment strategy.