earticle

영어

This paper proposes an EOQ model that integrates stock-dependent demand with a trade credit financing scheme. In many retail environments, higher inventory levels visibly stimulate consumer demand, while trade credit serves as a key incentive mechanism offered by suppliers. The model minimizes total inventory cost by considering ordering, inventory carrying, and capital opportunity costs during the permissible delay in payment. Analytical solutions for the optimal order quantity and replenishment cycle time are derived. Through sensitivity analysis, we show that extending the trade credit period increases both the order quantity and replenishment interval, while reducing total cost, though with diminishing returns. These results highlight the importance of synchronizing financial and operational decisions in inventory planning. The model provides practical guidance for managers dealing with demand-responsive products under delayed payment conditions.