The optimal retailer’s ordering policy with trade credit financing and multi-period cash discounts

• Main Authors: Shun-Yao Chen, 陳舜堯
• Other Authors: Ghi-Feng Yen
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/21122319620464876635

碩士 === 中原大學 === 企業管理研究所 === 98 === Within the economic order quantity framework, the main purpose of this paper is to investigate the retailer’s optimal ordering policy under permissible delay in payments. After Goyal(1985) started to analyze EOQ under permissible delay in payments, more and more studies about two- level trade credit have been completed. But there are only some researches combine cash discount policies. This paper analyzes all the relationships including suppliers and customers on retailer’s viewpoint. The focus of this study is to integrate the “two- level trade credit” and “multi-period cash discounts” policies to probe more complex situations. Finally, this study establishes the retailer’s inventory model as a cost minimization function to determine the retailer’s optimal cycle time and optimal order quantity. Three policies (cases) are assumed, analyzed and discussed. Then we use derivative approach to develop three theorems to find out the optimal replenishment cycle time. Three theorems are established to describe the optimal ordering policy for the retailer.