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The Order Quantity Decision of Newsboy Retailer with Financing

Author

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  • Ma Zhonghua

    (School of Management & Economic, Shanghai Maritime University, Shanghai201306, China)

Abstract

We analyze the retailer’s optimal order with capital constraint under stochastic demand. We consider the impact of external financing, that is inventory financing, and the internal financing, that is trade credit, on the order strategy of retailer separately. We establish revenue model of retailer and solve, and give revenue of retailer and supplier respectively. Finally, we give the impact of own funds on the retailer’s order quantity, retailer’s revenue, supplier’s revenue, as well as the impact on the overall revenue gains of the supply chain. And some analysis and statement are also given in the end.

Suggested Citation

  • Ma Zhonghua, 2014. "The Order Quantity Decision of Newsboy Retailer with Financing," Journal of Systems Science and Information, De Gruyter, vol. 2(4), pages 358-365, August.
    • Handle: RePEc:bpj:jossai:v:2:y:2014:i:4:p:358-365:n:6
    DOI: 10.1515/JSSI-2014-0358
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    References listed on IDEAS

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    1. Chen, Liang-Hsuan & Kang, Fu-Sen, 2007. "Integrated vendor-buyer cooperative inventory models with variant permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 183(2), pages 658-673, December.
    2. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2007. "Coordination and profit sharing between a manufacturer and a buyer with target profit under credit option," European Journal of Operational Research, Elsevier, vol. 182(3), pages 1469-1478, November.
    3. John A. Buzacott & Rachel Q. Zhang, 2004. "Inventory Management with Asset-Based Financing," Management Science, INFORMS, vol. 50(9), pages 1274-1292, September.
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