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A Retail Category Inventory Management Model Integrating Entropic Order Quantity and Trade Credit Financing
Pradip Kumar Tripathy, S. Pradhan
Pages - 27 - 39     |    Revised - 31-01-2011     |    Published - 08-02-2011
Volume - 1   Issue - 2    |    Publication Date - January / February  Table of Contents
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KEYWORDS
Discounted cash-flow, trade credit, entropy cost
ABSTRACT
A retail category inventory management model that considers the interplay of entropic product assortment and trade credit financing is presented. Specifically, the proposed model takes into consideration of key factors like discounted cash flow. Therefore, to incorporate the concept of supplier-retailer integration and order size dependent trade credit, we established a stylized model to determine the optimal strategy for an integrated supplier-retailer inventory system under the condition of trade credit financing and is entropy type demand. This paper demonstrates that the optimal solution is flexible enough to accommodate the supplier retail relationship under a perfect trade credit understanding without significantly deviating from the main goal at increasing sales revenue of supplier and retailer. Finally numerical examples are used to illustrate the theoretical results followed by the insights into a lot of managerial inputs.
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Associate Professor Pradip Kumar Tripathy
Utkal University - India
Dr. S. Pradhan
- India