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...

Recently, the enterprises, from a financial perspective, have been seeing that need of the integrating with others with trade credit policies as a promising issue for savings in the supply chain. In this direction, this paper establishes a new economic production quantity (EPQ) inventory model for deteriorating items under two levels of trade credit, in which the supplier offers to the retailer...

The traditional inventory of the economic order quantity model assumes perfect items in an ordered lot and an infinite replenishment rate. However, such conditions are rare in actual production environments. Additionally, most studies of this problem have only considered suppliers offering the wholesaler a grace period. In practice, wholesalers often extend a fixed credit period to downstream c...

The aim of this article is to determine the level and the nature of the quantitative and qualitative factors' influences on development of the banking sector and their influence on economic growth in South-East European countries (SEE). We used a OLS model with panel-corrected standard errors (PCSE) and panel data from six transition countries for the period 1999-2006. We measure the qualitativ...

The purpose of this study is to assess how information sharing offices affect loan price and quantity in the African banking industry. The empirical evidence is based on a panel of 162 banks in 42 countries for the period 2001-2011. From the Generalised Method of Moments, public credit registries decrease loan price. With instrumental Quantile Regressions, two main findings are established. Pub...

In this paper, we validate the performance of the MKMV EDF credit measure in its timeliness of default prediction, ability to discriminate good firms from bad firms, and accuracy of levels, with a focus on U.S. markets. We focus on the period 1996-2004 for most of our tests. Wherever possible, we compare the performance to that of other popular alternatives like agency ratings, Z-Scores, and a ...

Email: [email protected] Abstract: Many researchers have assumed one stage trade credit financing. In this study, we considered two levels of trade credit policy using Discounted Cash Flow (DCF) approach. Demand rate is considered to be stock-dependent for the first level (credit demand) and constant for second level (cash demand). Mathematical models are derived under two differen...

Consumer credit is any of the many forms of commerce under which an individual obtains goods or services on condition of a promise to pay for their value, along with a fee (the interest), at some specific future date or dates. Consumer credit can take a variety of forms: bank loans, credit cards, retailer’s card, car finance schemes, etc. In industrialized countries, this form of credit has bec...

This paper develops the thesis that credit market frictions may be an important contributor to high unemployment in Europe. When a change in the technological regime necessitates the creation of new "rms, this can happen relatively rapidly in the U.S. where credit markets function e$ciently. In contrast, in Europe, job creation is constrained by credit market imperfections, so unemployment rise...

This paper explores a reason why retailers pay such large merchant fees to credit card issuers. Credit cards as media of exchange are introduced to a New Monetarist model in which exchange occurs in alternating centralized and decentralized markets. Sellers who exert high (low) effort produce a good with a high (low) probability of being high quality. The quality of the good is revealed only af...