Optimal Ordering Strategy with Permissible Delay in Payments
2012 (English)In: 2012 9th International Conference on Service Systems and Service Management: Proceedings of ICSSSM'12 / [ed] Jian Chen, Qiang Su, IEEE Computer Society Digital Library, 2012, 376-379 p.Conference paper (Refereed)
This paper discusses an inventory impawn financing model with permissible delay in payments from the viewpoint of revenue management. We assume that a retailer has to make his ordering decision so as to maximize his average profit with only an initial budget of setup cost, while the supplier offers two means of payments: instantaneous payments or permissable delay in payments. If there exists a capital shortage, it is possible for the retailer to loan from a third party logistics (3PL) being able to provide financing services. The paper analyzes retailer’s possible ordering strategies and the corresponding optimal solutions.
Place, publisher, year, edition, pages
IEEE Computer Society Digital Library, 2012. 376-379 p.
Research subject Computer and Systems Sciences
IdentifiersURN: urn:nbn:se:su:diva-84871DOI: 10.1109/ICSSSM.2012.6252258ISBN: 978-1-4577-2024-6OAI: oai:DiVA.org:su-84871DiVA: diva2:581631
ICSSSM'12, July 2-4, 2012 Shanghai, China