This paper provides a theoretical analysis of trade credit within real options framework. We show that under the buyer delays decision to stop production, getting closer supply chain optimal stopping decision. Therefore, may serve as coordination device. The supplier can optimally choose offer for free, since this will guarantee her business longer period time. Optimal design is analyzed an int...

This paper considers a two-echelon capacitated supply chain with two non-identical retailers and information sharing. We characterize the optimal inventory policies. We also study the benefits of the optimal stock rationing policy over the first come first served (FCFS) and the modified echelon-stock rationing (MESR) policies. © 2006 Elsevier B.V. All rights reserved.

We study a class of two echelon, serial systems with identical ordering capacities or limits for both echelons. For the case where the lead time to the upstream echelon is one period, the optimality of state-dependent, modified echelon base-stock policies is proved using a decomposition approach. For the case where the upstream lead time is two periods, we introduce a new class of policies call...

We develop a model with money and credit where agents have different productivity to study credit and allocation. We show the link between the credit rationing, productivity and monetary policy, and study the distributional effects of monetary policy on the credit constraints, money holdings, and the ability to trade across agents. An agent’s productivity reflects his ability to replenish the m...