Inventory Control and Trade Credit Revisited
@article{Chung1989InventoryCA,
title={Inventory Control and Trade Credit Revisited},
author={K. Chung},
journal={Journal of the Operational Research Society},
year={1989},
volume={40},
pages={495-498}
}This paper presents the discounted cash-flows (DCF) approach for the analysis of the optimal inventory policy in the presence of the trade credit. The DCF approach permits a proper recognition of the financial implication of the opportunity cost and out-of-pocket costs in inventory analysis. This approach also permits an explicit recognition of the exact timing of cash flows associated with an inventory system. As a result, the effect of the delayed payment is appropriately reflected in… CONTINUE READING
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