The Retailer's Optimal Inventory Policy Under Delay In Payments And Price-discount

The topic selection comes from the National Natural Science Foundation Project (70771034) and the PhD.programs Foundation of Ministry of Education of china (20060359007).With the rapid development of economy, the demands of products are getting more personalized for people. It leads to corporate functions constantly being broken down, while the retail trade plays an increasingly important business role with the sale as its main function. Delay in payments is generally used in the transactions between suppliers and retailers so that the suppliers can usually induce the retailers to order more products. At the same time,in order to return their own capitals quickly, the suppliers will combine delay in payments with price discount, which are effective means to control the sales and capital turnover.This paper mainly studies optimal inventory strategies such as the optimal ordering cycle and a background for retailers based on delay in payment and cash discounts, by studying and summarizing the research results at home and abroad about delay in payment. The factors considered in this thesis are close to the reality as much as possible and the following aspects are included.(1)Under permissible delay in payments,Suppliers promise to give cash discounts within a certain time.On the basis, this paper considers retailer's optimal inventory model under the condition of two-parameter Weilbull distribution deterioration and creates an optimization inventory model to minimize inventory system cost. For the diversity of demand function, this paper assumes two kinds of demand curves which are inventory-level-dependent and price-dependent respectively. We propose a method to determine the optimal ordering quantity and payoff cycle.(2)Ouyang (2006) established a retailers'two-parameter optimal inventory model, considered deterioration and partial backlogging under permissible delay in payments.In this paper, we establish an optimization inventory model and we adopt pseudo-convex function to prove the uniqueness of the three-parameter optimal solution, based on the consideration of this sub-period of the cash discount.It is also assumed that the demand is exponentially and linearly affected by price. We study the impact of various factors on the model and obtain some rules on the conditions that demands are the price of exponential function, linear function respectively.