With the increasing complexities in supply chains and increasing global trade, integrated supply chain network design is utilized by the firms in order to reduce the overall cost while meeting the customer demand with requisite levels of service. This view of collaborative approach towards supply chain design has the potential of providing competitive edge for the firms in a highly competitive ...

There is evidence that suppliers have private information about their customers’ credit risk. Yet, interest rates in trade credit markets are usually industry-not-firm specific. Why? If the demand for intermediate products is inelastic, suppliers should raise interest rates until they reach their customers’ outside option. By definition, this outside option cannot reflect information that is pr...

The paper considers the sustainable trade credit and inventory policies with demand related to credit period and the environmental sensitivity of consumers under the carbon cap-and-trade and carbon tax regulations. First, the decision models are constructed under three cases: without regulation, carbon cap-and-trade regulation, and carbon tax regulation. The optimal solutions of the retailer in...

This paper examines whether and how ownership structure affects the trade credit policies in smalland medium-sized firms (SMEs) using a sample obtained from a survey of Chinese enterprises. Specifically, we examine how ownership concentration affects SMEs’ use of trade credit through influencing the availability of bank credit. We also examine whether the ownership of the ultimate controller in...

Financial trade credit theories argue that suppliers have an advantage over other lenders in financing credit-constrained firms. While the reasons for this advantage differ across theories, they are usually related either to product characteristics or to market structure. We exploit this insight to analyze trade credit volume and contract terms. Ceteris paribus, service suppliers offer as much ...

In this paper, a model is developed to determine retailer's inventory policy under two-level trade credit system. It is assumed that the retailer has a powerful position so that he can obtain the full trade credit offered by supplier whereas customer can obtain just the partial trade credit from the retailer. The proposed model also allows fully backlogged shortages. This robust Mathematical mo...

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 ...

A positive corporate reputation is generally taken to be a valuable resource leading to competitive advantage. In this paper we examine the association between a firm's media reputation and the amount of trade credit given in a sample of listed UK firms. Consistent with expectations, our results show that a firm's willingness to extend trade credit to its customers is inversely related to its m...

The main purpose of this paper is to investigate the retailer’s inventory policy under two levels of trade credit to reflect the supply chain management situation. In this paper, we assume that the retailer has the powerful decision-making right. So, we extend the assumption that the retailer can obtain the full trade credit offered by the supplier and the retailer just offers the partial trade...