Study On Order Strategy Based On Trade Credit And Stock-dependent Demand Rate

Study on order strategy based on stock-dependent demand rate in the credit environment can be used to balance the relationship between the interest income and sales income and the interest payments and inventory cost, not only enriched the inventory management theory, but also have certain guiding on order management of goods with stock-dependent demand rate on the reality.Reviewing the research status and trend of trade credit, stock-dependent demand rate and order strategy, this paper simply introduces the concept, model and classification of trade credit, and discusses the demand rate function, inventory level function and demand function under stock-dependent demand. It also compares the EOQ model and EOQ model under credit payment.This paper establishes single fixed trade credit order model, single multistage trade credit order model and double trade credit order model under stock dependent demand from the single and double trade credit two models. All the models analysis every cost and each income of retailers in the trade credit systematically, and obtain the parameter expression of all the cost and income with the inventory level function and demand rate function under stock-dependent demand as a breakthrough. They are also fully considered the relationship of length between credit period and order cycle, and per unit time is regarded as objective function. Moreover, the existence of the unin optimal solution and solving of optimal solution is given.The paper also pays attention to integrating theory with practice, and gives empirical analysis by using the acture data of some kinds of goods, then get the optimal order cycle and order quantity. It also analyses the sensitivity of the main parameters in detail. The sensitivity analysis can get the following conclusions:(1) the rate of demand factor a,(3and sales prices P have a great influence on the order cycle and the order quantity, but the credit period have a little influence on the order cycle and the quantity effect;(2) retailers should try to use these suppliers that have greater credit payment period, while the order cycle time and order quantity shuld have little adjustment when other parameters are constant;(3) the influence on order cycle and the order quantity from a is special. The retailers should extend the order cycle and reduce the order quantity when the value of a is smaller, and retailers should shorten the order cycle and increase the order quantity when the value of a is larger.