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| Optimal Model of Account Sale of Products in Declining Period of Life Cycle
Based on the Demand Shifting |
| SUN Qing-Wen, LUAN Xiao-Hui, HUAI Liu |
| Hebei University Economics and Business, Shijiazhuang, China |
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Abstract Considering the impact of account sale on cash sale in the process of account sale of enterprises, the demand shifting of cash sale because of account sale, and the cash sale and account sale characteristics in the declining period of products and applying the theories of product life cycle (PLC) and the dynamic programming, this paper sets up the optimal model of decision making in the declining period of life and makes out the optimal starting time with the purpose of maximizing the total profit of cash sale and account sale,. Then it determines the best credit policy by exploring the relation between the optimal starting time of account sale and enterprise making the credit policy .The paper provides certain proof for enterprises to make reasonable and economical credit policies.
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Received: 14 December 2010
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2012, Vol. 9 
