A Model for the Integration of Credit and Inventory Management

Evaluating Investments in Accounts Receivable: A Wealth Maximizing Framework

“…Another effort for the integration of credit and inventory management can be found in the study by Schiff and Lieber [15]. They attempted to optimize the firm's profits over time .…”

Working capital management, cash flow and SMEs' performance

“…This is because internal cash flow is cheaper than external financing (Myers and Majluf, 1984). The availability of cash flow can help firms to improve performance by extending more credit to customers (Deloof, 2003), increasing inventory in stock (Schiff and Lieber, 1974) and paying upfront to enjoy cash discount (Ng et al, 1999;Wilner, 2000). In summary, the results show that SMEs with cash availability exhibit the conservative strategy of WCM, whereas SMEs with lack of cash availability follow the aggressive strategy of WCM.…”

“…SMEs with cash flow can entice customers to purchase to purchase a greater amount (Emery, 1987) by extending more generous trade credit terms. Cash flow availability may allow SMEs to increase inventory in stock, which will mean that customers will always have what they want (Schiff and Lieber, 1974). This may lead to higher sales, which will in turn improve performance.…”

A Note on Optimal Credit and Pricing Policy under Uncertainty: A Contingent‐Claims Approach

“…11See, e.g., [7], [5], [10], [8], [6], and [9]. For a review and critique of the credit‐granting literature after 1970, see [4] and, for that before 1970, see [2].…”