Ordering strategies for supply chain financing based on the newsboy model

This paper applies the supply chain financial management to deal with the cash constraints of the newsboy model. Considering the credit line and bankruptcy risk of the retailer, we analyzed the optimal orders of the retailer. In the new model, the sales of the product, financing interest and credit period are also considered. Then, we solve the model and obtain a series of useful management conclusions through sensitivity analysis and comparison with the classical newsboy model. The proposed model provides a new method for the retailers to administrate the cash and inventory.