The Study Of Two-Level Delay In Payment Of Company

The existing foreign and domestic researching about delay in payment are spread out from all kinds of assumptions, from general merchandise to deteriorating merchandise, from fixed demand to time-varying demand; from no money time-value to including economic environment. These researches get the product’s best order cycle, order quantity, price level, repayments time and give the real commercial activity a certain guiding significance. Delay in payments has been widely applied in real commercial activity. Seller can increase sales, expand the market share and set up good enterprise images by offering buyer delay in payments. Buyers can use the sales income within the delay in payments to gain additional investment income which can effectively relieve financial pressure. So delay in payments is a win-win cooperation way both to seller and buyer.BC company is a dealer of system integration products which is in the middle of three-level supply chain. The suppliers provide rich products for BC company and it has owned certain share in system integration industry. In order to improve sales volume and small and medium-sized customers’ proportion, BC introduces delay in payment to its supply chain. It means the supplier allows BC to repay after some time and at the same time BC allows its clients to repay after some time. This forms the two-stage delay in payment in three-level supply chain formed by product supplier, BC company and clients.In this paper, we summarize the previous research work. According to the three-level supply chain including product supplier, BC Company and clients, this paper analysis the two-level delay in payments standing in BC Company perspective and probe into the all-unit delay and partial delay respectively. What’s more, I introduce the cash discount into the two-level delay in payment, and set a fixed cash discount deadline. This paper includes following parts:(1)Based on the supplier has given BC Company a delay in payment, BC company’s best order cycle and quantity when BC company give client a all-unit payment delay;(2)Based on the supplier has given BC Company a delay in payment, BC Company’s best order cycle and quantity when BC Company give client a partial payment delay;(3)Take two representative products for example, this paper study these two product’s best order cycle and quantity in two payment-delay modes.(4)Take one of the product’s parameter for example, analysis BC Company’s best repayment time and the best period of trade credit it should give client to minimize its cost using data and Matlab. Based on the above, we propose some suggestions about when to repay and how long delay BC Company should give its clients.