Financing Newsvendor Inventory

Joice (Qiaohai) Hu, Maqbool Dada

Research output: Contribution to journalArticlepeer-review

Abstract

If the cost of borrowing is not too high, the capital-constrained newsvendor borrows funds to procure an amount that is less than would be ideal. The lender charges an interest rate that decreases in the newsvendor’s equity. Furthermore, we derived a non-linear loan schedule that coordinates the channel.
Original languageAmerican English
JournalOperations Research Letters
Volume36
DOIs
StatePublished - Sep 2008

Disciplines

  • Business

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