Inventory Control and Trade Credit Revisited

@article{Chung1989InventoryCA,
  title={Inventory Control and Trade Credit Revisited},
  author={Kee H. Chung},
  journal={Journal of the Operational Research Society},
  year={1989},
  volume={40},
  pages={495-498}
}
  • Kee H. Chung
  • Published 1 May 1989
  • Business
  • Journal of the Operational Research Society
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… 
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References

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Inventory Control and Trade Credit
Using generally accepted principles of financial analysis, this paper argues that, if trade credit has the character of a renewable source of capital, the usual assumptions as to the incidence and
Inventory Policy and Trade Credit Financing
It is common business practice to purchase inventory on open account. Consequently, purchased inventory can be considered to be financed in whole or in part with trade credit. This paper investigates
Inventory Control and Trade Credit—A Reply to Daellenbach
An earlier paper by the authors discussed the importance of credit policies in the basic economic-order-quantity inventory model. Recently this analysis has been questioned, and a different result
Credit Policy and Inventory Control
Credit policies are shown to be important in the basic economic order quantity inventory model. An economic order quantity model is derived which explicitly considers possible credit periods allowed
Evaluating Investment in Inventory Policy: A Net Present Value Framework
ABSTRACT This paper provides a method for evaluating investment in inventory that is consistent with a wealth maximizing objective. Theoretical superiority and conceptual straightforwardness of the
A PRESENT VALUE FORMULATION OF THE CLASSICAL EOQ PROBLEM
The usual analysis of the deterministic economic order quantity problem seeks to minimize the average cost of inventory ordering and holding costs per unit time. An alternative approach described in
The Effect of Payment Rules on Ordering and Stockholding in Purchasing
The payment conditions for the purchase of raw materials and components have received little attention in the literature on inventory control. A common practice is to require payment by some specific
Inventory Control and Trade Credit-A Further Reply
Inventory Control and Trade Credit-A Rejoinder