Teng, Jinn-Tsair; Lou, Kuo-Ren; Wang, Lu - In: International Journal of Production Economics 155 (2014) C, pp. 318-323
In reality, a seller (e.g., a supplier or a manufacturer) frequently offers his/her buyers trade credit (e ….g., permissible delay in payment). Trade credit reduces the buyer's holding cost of inventory and hence attracts new buyers who … consider it to be a type of price reduction. On the other hand, granting trade credit also increases the seller's opportunity …