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A Bank Credit Model with Capital-Constrained Newsvendor Under Two Ordering Opportunities
Deli ZHAO, Baofeng ZHANG, Zongshui WANG
Journal of Systems Science and Information ›› 2016, Vol. 4 ›› Issue (5) : 408-418.
PDF(138 KB)
PDF(138 KB)
A Bank Credit Model with Capital-Constrained Newsvendor Under Two Ordering Opportunities
This paper proposes a financing system consisting of a bank under Mean-Variance criterion and a capital-constrained retailer, where the bank offers an unlimited credit to the retailer. The demand is assumed to be stochastic. The newsvendor is allowed to make an emergency order with a minimum reorder quantity threshold (RQT). It shows that under RQT, the newsvendor has different reorder strategies. The optimal primary order quantity and interest rate are derived, sequentially. Extension under perfectly competitive capital market is given. The mathematic model reveals that RQT and reorder price have significant effect on the optimal strategies.
capital constraint / two ordering opportunities / bank credit / newsvendor {{custom_keyword}} /
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