In today's competitive markets, most firms in United Kingdom and United States offer their products on trade credit to stimulate sales and reduce inventory. Trade credit is calculated based on time value of money on the purchase cost (i.e., discounted cash flow analysis). Recently, many...

In this note, a simple method by using the arithmetic-geometric-mean-inequality theorem is proposed to computer the global minimum economic order quantities without taking complex differential calculus or using tedious algebraic manipulations. In contrast to (Minner, S., 2007. A note on how to...