Title: An optimal credit policy to increase supplier's profits with price-dependent demand functions
Abstract:Abstract This paper deals with the problem of determining an optimal length of credit period from the perspective of supplier. We assume that a retailer jointly determines the unit retail price and or...Abstract This paper deals with the problem of determining an optimal length of credit period from the perspective of supplier. We assume that a retailer jointly determines the unit retail price and order size to maximize profit when he/she purchases a product for which the supplier offers a trade credit. Two widely used demand functions are adopted for the study in which demands are decreasing functions of the retail price. A procedure is presented which shows how to achieve an optimal length of credit period for suppliers. The effects of credit period on the behaviour of retailers are also investigated using an example.Read More
Publication Year: 1995
Publication Date: 1995-01-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 140
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot