![Optimal ordering policies when the supplier provides a progressive interest scheme [An article from: European Journal of Operational Research]](https://www.ebooknetworking.net/books/B00/0PC/bigB000PC0J2C.jpg)
Optimal ordering policies when the supplier provides a progressive interest scheme [An article from: European Journal of Operational Research]
Book Details
Author(s)S.K. Goyal, J.T. Teng, C.T. Chang
PublisherElsevier
ISBN / ASINB000PC0J2C
ISBN-13978B000PC0J26
AvailabilityAvailable for download now
MarketplaceUnited States 🇺🇸
Description
This digital document is a journal article from European Journal of Operational Research, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
In fact, most credit card issuers (or home equity banks) frequently offer cardholders (or customers) a teaser interest rate (say, I"1), which is significantly lower than the regular interest rate of I"2 (with I"2>I"1) for only 6months or a year (say, M"2) to lure new customers from their competitors. Consequently, the customer faces a progressive interest charge from the bank. If the customer pays the outstanding balance by the grace period (say, M"1 which is generally 25days), then the bank does not charge any interest. If the outstanding amount is paid after M"1, but by M"2 (with M"2>M"1), then the bank charges the customer the teaser interest rate of I"1 on the unpaid balance. If the customer pays the outstanding amount after M"2, then the bank charges the regular interest rate of I"2. In this paper, we first establish an appropriate EOQ model for a retailer when the bank (or the supplier) offers a progressive interest charge, and then provide an easy-to-use closed-form solution to the problem.
Description:
In fact, most credit card issuers (or home equity banks) frequently offer cardholders (or customers) a teaser interest rate (say, I"1), which is significantly lower than the regular interest rate of I"2 (with I"2>I"1) for only 6months or a year (say, M"2) to lure new customers from their competitors. Consequently, the customer faces a progressive interest charge from the bank. If the customer pays the outstanding balance by the grace period (say, M"1 which is generally 25days), then the bank does not charge any interest. If the outstanding amount is paid after M"1, but by M"2 (with M"2>M"1), then the bank charges the customer the teaser interest rate of I"1 on the unpaid balance. If the customer pays the outstanding amount after M"2, then the bank charges the regular interest rate of I"2. In this paper, we first establish an appropriate EOQ model for a retailer when the bank (or the supplier) offers a progressive interest charge, and then provide an easy-to-use closed-form solution to the problem.
