In today's business transactions, it is more and more common to see that the buyers are allowed some grace period before they settle the account with the supplier. In this regard, we analyze the problem of determining the buyer's EOQ when the supplier allows day-terms credit. For the analysis, it is assumed that the buyer's demand rate is a function of the on -hand inventory level and the relevant mathematical model is developed.

Abstract
 I. Introduction
 II. Assumptions and Notations
 III. Determination of buyer’s EOQ
 IV. Numerical Example
 V. Conclusions
 References

• Song Chang-Yong
• Shinn Seong-Whan