Trade Credit Term Determination and Efficiency Invariant Revenue Sharing

Author

Shi, Xiao Jun ; Zhang, Zhen Xia

Author_Institution

Sch. of Econ. & Manage., Beijing Univ. of Aeronaut. & Astronaut., Beijing

fYear

2007

fDate

21-25 Sept. 2007

Firstpage

4674

Lastpage

4677

Abstract

This paper first proposes an approximation solution to the optimal payment time and credit term with new features of the supplier unit cost function by applying Schwartz´s financing motive theory. Then we solve the problem of efficiency preserving allocating coordination surplus in DEA framework. An explicit formula of allocation is obtained. Two kinds of allocation schemes were contrasted in numerical experiments. Efficiency invariant allocation is proved to be more realistic than Aumann-Shapley schemes.

Keywords

approximation theory; data envelopment analysis; financial management; retailing; Schwartz financing motive theory; approximation solution; data envelopment analysis; invariant revenue sharing; optimal payment time; supplier unit cost function; supplier-retailer surplus allocation; trade credit term determination; Collaboration; Cost function; Delay effects; Financial management; Investments; Marketing and sales; Partial response channels; Procurement; Supply chains;

fLanguage

English

Publisher

ieee

Conference_Titel

Wireless Communications, Networking and Mobile Computing, 2007. WiCom 2007. International Conference on

Conference_Location

Shanghai

Print_ISBN

978-1-4244-1311-9

Type

conf

DOI

10.1109/WICOM.2007.1148

Filename

4340923