the present paper aimed at studying the current models of credit portfolio management. there are currently three types of models which consider the risk of credit portfolio: the structural models (moody's kmv model, and credit- metrics model), the intensity models (the actuarial models) and the econometric models (the macro-factors model). the development of these three types of models is based...

This paper develops an economic lot-sizing production model for deteriorating items with time dependent quadratic demand and delay in payments under two levels of trade credit policy. The trade credit policy adopted here is a two-level trade credit policy in which the supplier offers the retailer a permissible delay period M, and the retailer in turn provides customers a permissible delay perio...

Delayed payment (trade credit) and prepayment are widely observed forms of interfirm credit. We propose a simple theory to account for the prevalence of such credit. A downstream firm trades off inventory holding costs against lost sales. Lost final sales impose a negative externality on the upstream firm. The solution requires a subsidy limited by the value of inputs. Allowing the downstream f...

In most inventory models it is assumed that the parameters of the model do not vary with time, and that the payment of orders from the retailer to the supplier is made immediately up on the receipt of these orders. Some suppliers, however, allow a certain fixed period to settle payment accounts. During this fixed period no interest is charged by the supplier, but beyond that period an interest,...

It has been generally observed that the credit period has become a major concern for most of retailers, as it not only has direct influence on inventory and finance, but also on the demand of an item. Unfortunately, for deteriorating items, the impact of the credit period on demand has not received much attention in the literature, whereas in reality, the length of the credit period offered by ...

In this paper, we formulate and solve an economic order quantity model with default risk. Our main purpose is to investigate retailer’s optimal replenishment time credit period for deteriorating items under selling price-dependent demand while maximizing profit per unit time. Here, shortages are allowed partially backlogged interested customers. We show that not only exist but they also unique....

Trade credit is an increasingly important payment behavior in real business transactions. To reduce nonpayment risks, a supplier/retailer frequently offers partial trade credit to its credit risk downstream member who must pay a portion of the purchase amount at the time of placing an order and then receives a permissible delay on the rest of the outstanding amount. This paper develops an EPQ m...