Optimal order policy for deteriorating items under the conditions of two-warehouse and delay in payments
The external manufacturer takes the coordination strategy of delay in payment, and offers a credit to the supplier of the supply chain.
FC:Well, I've been looking at our payment terms, in other words how long we have to wait for payment, we must reduce the average delay in payment.
Deferred payment: If Party a delay in payment, it must pay interest on bank interest to Party b.
Secondly, regarding to the time of permissible delay in payment, cost functions are presented according to the order policy, and the existences of the optimal time are proved.
Optimal inventory decision under delay in payments considering duopolistic retailers different competitive behaviors;
Up until about a year ago there was an average delay in payment of confirmed documentary credits of between fifty to sixty days.