Paper
Economic Order Quantity Model with Inventory-Based Financing
- Authors:
- Peng Xu
- Abstract
- Most of the traditional models in inventory purchase ignore the financial states of enterprises and can result in infeasible practices in real systems. This paper attempts to incorporate inventory-based financing into order decisions. Instead of setting a known, exogenously determined budgetary constraint as most existing models suggest, we consider inventory management with financial constrait. Given seasonal commodities, regarding newsboy model as the archetype and Stackelberg game as analysis method, we discuss the inventory model from two aspects: enterprises purchase a single product, and they purchase multi-products. Moreover, in the case of multi-products, we discuss the model from four aspects classified according to purchasing order and whether initial capital remains or not.
- Keywords
- SMEs; Economic Order Quantity; Inventory Financing
- StartPage
- 71
- EndPage
- 76
- Doi