This paper deals with the problem of determining the retailer's optimal price and order size under the condition of order-size-dependent delay in payments. It is assumed that the length of delay is a function of the retailer's total amount of purchase. The constant price elasticity demand function is adopted which is a decreasing function of retail price. Investigation of the properties of an optimal solution allows us to develop an algorithm whose validity is illustrated through an example problem.

Abstract
 1. Introduction
 2. Development of the Model
 3. Analysis of the Model
 4. Numerical Example
 5. Conclusion
 References

• Seong Whan Shinn | 신성환