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When suppliers bring out a new product, they often allow the retailers to pay for it at the reorder point (it is one term of trade credit). Moreover, the retailers also offer the customers the trade credit in order to extend the market of this product. So this paper describes an EOQ model with multiple periods and different demand rate under two -echelon trade credit in which the supplier allows the...
This paper discusses the optimum order quantity of the EOQ model that is not only dependent on the inventory policy but also on firm' credit policy. To reduce default risks, in practice, a supplier frequently offers a partial down-stream trade credit to its customers who must pay a portion of the purchase amount at the time of placing an order as a collateral deposit, and then receive a permissible...
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