The COVID-19 pandemic has affected all sectors of the world’s economy and society. Firms need to have disaster recovery business sustainability plans be able generate profits in order develop. Trade credit may a good way for firms free up cash flow finance short-term growth. Extensions payment will provide with low-cost loans under guarantee scheme. Implementation hybrid trade activities been s...

Traditionally, inventory models with trade credit policy deal with contain demand or merely dependent on the retailing price. Therefore, this paper tries to incorporate the retailer’s inventory-dependent demand and storage space limited in the retailer’s inventory model, which will make the decision-maker of inventory system to know whether to rent RW and how to order. Two easy-touse theorems a...

Answers how much to order when to order. Reduced price when item is purchased in larger quantities.The first model we will present is called the economic order quantity EOQ. We will discuss two types of quantity discount contracts: all units discounts and.buy the lowest total cost quantity, save the buyer money and, in some cases, receive more goods. quantity discount model example When we buy ...

It is typically less profitable for an opportunistic borrower to divert inputs than to divert cash. Therefore, suppliers may lend more liberally than banks. This simple argument is at the core of our contract theoretic model of trade credit in competitive markets. The model implies that trade credit and bank credit can be either complements or substitutes. Among other things, the model explains...

Burkart and Ellingsen’s (2004) model of trade credit and bank credit rationing predicts that trade credit will be used by medium-wealth and low-wealth firms to help ease bank credit rationing. The author tests these and other predictions of Burkart and Ellingsen’s model using a large sample of more than 28,000 Canadian firms. She uses an endogenous method to divide the firms into the appropriat...

This article explores a finite replenishment model with variable deterioration for fixed lifetime products. In this model, suppliers offer trade credit period to the retailers in order to increase the demand of their products. During the credit period, the retailers can earn more by selling their products. The interest on purchasing cost is charged for the delay of payment by the retailers. Som...

The classical economic order quantity model of Wilson’s was developed with the assumption that the buyer must pay off immediately on arrival of the goods in the inventory system. In fact, offering buyers to delays payment for goods received is considered as a sales promotional tool in the business world. With offer of trade credit, vendor increases sales, attracts more buyers and reduces on – h...

An EOQ (Economic Order Quantity) model for a deteriorating item with quadratic demand pattern and quadratic holding cost and constant deterioration rate is considered in this paper. In addition, shortages and partial backlogging are allowed. It is assumed that the backlogging rate acts as not only a variable, but also depends on the length of the waiting time up to next replenishment during the...