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J4  2008, Vol. 5 Issue (2): 188-    DOI:
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Analysis of Order Policy under  Delay in Payment and Temporary Price Discount
 ZHA Ying-Chun, HUA Zhong-Sheng, WU Jie
University Science of Technology of China,Hefei,China

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Abstract  

Payment rule that payment is permitted only when order quantity is larger than a specific value was extended from past threshold-value style to the period of delay in payment that is a stepwise function of order quantity.  The optimal temporary replenishment policy under this background was argued and analyzed. The result shows that the order size is determined by the on-hand inventory, capital interest, investment return interest, the price discount and the term of delay in payment.

Key wordsreplenishment policy      delay in payment      temporary price discount     
Received: 17 April 2007     
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ZHA Ying-Chun
HUA Zhong-Sheng
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ZHA Ying-Chun,HUA Zhong-Sheng,WU Jie. Analysis of Order Policy under  Delay in Payment and Temporary Price Discount[J]. J4, 2008, 5(2): 188-.
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