How does the retail price maintain trade-credit management with continuous investment to support the cash flow?

IF 11 1区管理学 Q1 BUSINESS

Journal of Retailing and Consumer Services Pub Date : 2024-11-27 DOI:10.1016/j.jretconser.2024.104116

Sanjey Kumar , Meenu Sigroha , Neeraj Kumar , Mamta Kumari , Biswajit Sarkar

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引用次数: 0

Abstract

In the present era of ever-growing competition, companies use various pricing strategies that add to their sales and profits. The potential to make accurate payments is crucial for companies to support the cash flow and keep a check on liquidity. To settle business transactions of items, both the producer and retailer have to agree upon various payment terms. To control the deterioration, money should be invested in the policy of preservation technology. The demand function is a multiplicative form of selling price and credit period. Shortages are allowed for complete backorder. This study aims to optimize the preservation technology and selling price to increase the total profit under the policy of trade-credit. A numerical example is discussed with sensitivity analysis, which shows the impact of preservation technology in observing the loss of deterioration. Under the retail price and trade-credit policy management, it has been found a big amount of profit compared with the literature.

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来源期刊

Journal of Retailing and Consumer Services BUSINESS-

CiteScore

20.40

自引率

14.40%

发文量

340

审稿时长

20 days

期刊介绍： The Journal of Retailing and Consumer Services is a prominent publication that serves as a platform for international and interdisciplinary research and discussions in the constantly evolving fields of retailing and services studies. With a specific emphasis on consumer behavior and policy and managerial decisions, the journal aims to foster contributions from academics encompassing diverse disciplines. The primary areas covered by the journal are: Retailing and the sale of goods The provision of consumer services, including transportation, tourism, and leisure.