The main purpose of this paper is to investigate the optimal retailer’s replenishment decisions under two levels of trade credit policy within the economic production quantity (EPQ) framework. We assume that the supplier would offer the retailer a delay period and the retailer also adopts the trade credit policy to stimulate his/her customer demand to develop the retailer’s replenishment model ...

Looking through the inventory models with deteriorating items shows that the deterioration rate is considered constant in most of the previous researches. But,in the real world, deterioration rate is not actually constant and slightly disturbed from its original crisp value. In this paper a more realistic inventory model with fuzzy deterioration and fully backlogged shortage under inflation is ...

Dynamic programming has been used to solve numerous complex problems in business and engineering. This study applies dynamic programming to a retail decision-making problem related to trade credit. A price, shelf-space, and time-dependent demand function is introduced to model the finite time horizon inventory. Trade credit was considered in the model because suppliers commonly provide retailer...

The paper presents a theory of the demand for money that combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher inflation and financial innovation that reduces the cost of credit induce agents to substitute away from money towards exchange credit. This results in an interest elasticity of money that rises with the in...

We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions making the choice of payment method interesting also imply equilibrium price dispersion, and together these deliver closed-form solutions for money demand. The model can ...

In this article, an inventory model is developed to deal with the impreciseness present in the market demand and the various cost parameters. The presented model is developed in crisp and fuzzy environments. Signed distance method is used for defuzzification. In most of the classical models, constant demand rate is considered. But in practice purchasing deeds of the customers is affected by the...

The introduction (and widespread use) of credit cards increases trading efficiency but, by also increasing the velocity of money, it causes massive inflation, in the absence of monetary intervention. If the monetary authority attempts to restore pre-credit card price levels by reducing the money supply, it will have to sacrifice all the efficiency gains. When there is default on credit cards, t...