Research On Retailer's Ordering Policies Based On Credit Payment Under Resource Constraints

With the rapid development of the economy and the increasingly fierce competition in the market,trade credit has been paid more and more attention and applied by enterprises.Many small and medium-sized enterprises are facing the challenges of resource constraints while enjoying preferential payment,such as the small scale of their own stock and the shortage of initial funds,which restrict the normal development of enterprises.Therefore,how to cope with resource constrained difficulties,make full use of the advantages of credit payment,effectively reduce inventory management costs and achieve optimal allocation of enterprise resources have become a very important part of enterprise operation management.This paper is based on the retail inventory model under resource constraints,combined with the credit and financial supply chain strategy to optimize the average annual cost of retailers,which discusses the following three contents by using theoretical analysis,mathematical modeling and simulation method.(a)The study of retailer's ordering strategy with two layers of credit payment.That is,suppliers give retailers a partial credit payment,and retailers give customers full credit payment.A retailer's EOQ model is established to prove the existence and uniqueness of the optimal ordering policy.The sensitivity of the main parameters is analyzed by MATLAB tool.(b)The study of retailer's ordering strategy with two-level trade credit and two warehouses.That is,suppliers offer two credit payments according to the order quantities and retailers' own warehouse is limited.A retailer's EOQ model is established to analyse the existence and uniqueness of the optimal order cycle,and the method to find the optimal solution is also given.(c)The study of retailer's ordering strategy with the shortage of initial funds and random demand.Based on Newsboy model,a deteriorating inventory model is builded,which combines the supply chain finance with the ACC payment mode.The objective function to be optimized is considered as the expected cost of the retailer.At last,some numerical examples are also given to illustrate the theoretical results and some important managerial insights are obtained.This paper studies the retailer's ordering strategy based on credit payment under resource constraints,which has certain theoretical significance for enriching inventory management theory,and has practical significance for guiding retailers to order and store decisions.