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 language | English (US) |
---|---|
Pages (from-to) | 569-573 |
Number of pages | 5 |
Journal | Operations Research Letters |
Volume | 36 |
Issue number | 5 |
DOIs | |
State | Published - Sep 1 2008 |
Externally published | Yes |
Keywords
- Capital-constrained coordination
- Newsvendor
- Stochastic inventory
ASJC Scopus subject areas
- Software
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics