Research on the Optimal Model of the Account Sale of the Products in Declining Period of Life Cycle Based on the Demand Shifting

Abstract:

Research on the account sale only focused on account sale itself, and it can’t support enterprises sufficiently to make decision of account sale in theory and methodology. So considering the impact of account sale on cash sale in the process of account sale of enterprises, the demand shifting of cash sale because of account sale, the cash sale and account sale characteristics in declining period of products and applying the theories of product life cycle (PLC) and dynamic programming, the paper set up the optimal model of decision-making in declining period of life cycle for the purpose of maximizing total profit of cash sale and account sale and made out the optimal starting time, then determined the best credit policy by exploring the relation between the optimal starting time of account sale and enterprises making credit policies. The paper provides certain proof for enterprises to make reasonable and economical credit policies.

• Periodical: Advanced Materials Research (Volumes 204-210)
• Pages: 1659-1664
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.204-210.1659
• Online since: February 2011
• Authors: Qing Wen Sun, Liu Huai
• Keywords: Account Sale, Demand Shifting, Optimal Model of Decision-Making, Products in Declining Period of Life Cycle

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