A Credit Limit Decision Model for Inventory Floor Planning and Other Extended Trade Credit Arrangements*
通过评估无限规划期内具有连续信用决策的马尔可夫现金流过程，提出了一个封闭形式的信用额度决策模型，并利用制造业企业数据估计参数范围，实证支持了模型变量对贸易信贷余额的重要决定作用。
ABSTRACT This paper analyzes the dealership credit limit problem in terms of the valuation of a Markov process of cash flows with sequential credit decisions over an infinite planning horizon. The formulation distinguishes between the upper bound on credit applicable at the account formation stage and the upper bound applicable to periodic reorders. The result is a closed form solution to the problem which serves as a criterion function for approving or denying credit on a customer‐by‐customer basis. Data for a sample of manufacturing firms are employed to estimate typical ranges for criterion function parameters. Upper bounds on credit limits are then calculated and graphically presented for median parameter values as well as for values at the 5th and 95th percentiles for the sample data. Finally, an empirical study is conducted of actual trade credit extended by firms. The results support the hypothesis that the variables in the decision model are important determinants of the amount of trade credit outstanding.