Optimal Inventory Policy under Permissible Payment Delay in Fashion Supply Chains

This paper investigates a retailer’s optimal inventory cycle and the corresponding time of payment in fashion supply chains where a supplier allows the payment delay. Here according to the established model we first analyze the retailer's reaction, and then find out the retailer’s optimal inventory policy and time of payment to maximize its total profit. Our result shows that it is not always the best choice for retailers of fashion supply chains to choose the discount way to replenish stocks, but the retailer can decide the optimal credit period and inventory cycle. Moreover, numerical examples are provided to illustrate the model’s feasibility and rationality