Credit Policy and Inventory Management
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In this book we are interested to develop some innovative inventory management problems under trade credit financing with the help of existing methods or some extension of these methods. Our aim is also to develop operating rules for controlling inventory systems by mathematical analysis. For this purpose, the first task is to express the inventory system in a mathematical model of the inventory system. However, such a mathematical model is based on various assumptions and approximations that fit in the overall framework of the model. It is difficult both to devise and to operate with an accur...
In this book we are interested to develop some innovative inventory management problems under trade credit financing with the help of existing methods or some extension of these methods. Our aim is also to develop operating rules for controlling inventory systems by mathematical analysis. For this purpose, the first task is to express the inventory system in a mathematical model of the inventory system. However, such a mathematical model is based on various assumptions and approximations that fit in the overall framework of the model. It is difficult both to devise and to operate with an accurate (real world) model. Construction of a truly realistic model is almost impossible because nobody knows what the real world is really alike. Again, even if it be possible to construct a real world model, it may not be amenable to mathematical treatment. In that event, the additional costs of deriving and solving an improved model cannot be justified. Throughout the book, I discuss various inventory models for non perishable and/or perishable items under trade credit financing. Some numerical examples are used to illustrate each model.
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