Inventory Management with Asset-Based Financing

By J. Buzacott, Rachel Q. Zhang. Management Sciences, 2004

641 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/85ebedf83e0986f002353d9f500b29d902a154a2

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In Management Information Systems

Citations in the corpus

Supply Chain Contract Design Under Financial Constraints and Bankruptcy Costs (2016, background): “For a capital constrained retailer without default costs, Buzacott and Zhang (2004) discuss asset-based financing and analyze how a strategically behaving bank decides the interest rate of the loan to the retailer.”
Does finance solve the supply chain financing problem (2016, background): “…the literature addressed some related topics, including the analysis of the relationship between asset-based financing and inventory control (Buzacott and Zhang, 2004), the joint short-term financing of buyer-supplier dyads (Raghavan et al., 2011) and the coordination of the entire supply…”
Dynamic inventory management with cash flow constraints (2008, background): “Buzacott and Zhang consider a single period inventory management problem where the bank’s decisions include the interest rate to charge and the loan limit, and the retailer needs to decide the amount to borrow within the loan limit and the amount of inventory to order from suppliers.”
A Trade Credit Model with Asymmetric Competing Retailers (2018, background): “Buzacott and Zhang (2004) examine the effect of asset-based ﬁnancing and show that it can enhance retailers’ proﬁts when bank credit is used.”
The Roles of Bank and Trade Credits: Theoretical Analysis and Empirical Evidence (2014, background): “Buzacott and Zhang (2004) studied a deterministic multi-period production/inventory control model and investigated the interplay between inventory decisions and asset-based ﬁnancing.”
The Newsvendor Problem and Price‐Only Contract When Bankruptcy Costs Exist (2011, background): “For the study of interactions between banks and retailers, we refer to Buzacott and Zhang (2004) and references therein, with the emphasis on understanding the interest rates that proﬁt maximizing banks will charge to ﬁnancially constrained newsvendors.”
Financing newsvendor inventory (2008, background): “Our formulation of the newsvendor’s problem is a variation of the retailer’s problem considered by [5].”
Financing the Newsvendor: Supplier vs. Bank, and the Structure of Optimal Trade Credit Contracts (2012, background): “Buzacott and Zhang (2004) discuss asset-based financing in an inventory context. It investigates the situation that a retailer borrows money from a profit maximizing bank. Because of the profit seeking nature of the bank, the loan is not competitively priced, which generates agency problems and resu”
How Inventory Is (Should Be) Financed: Trade Credit in Supply Chains with Demand Uncertainty and Costs of Financial Distress (2013, positive): “Buzacott and Zhang (2004) examine a related model of a firm's inventory decision when the company uses asset-based financing and the bank is a strategic player.”
Joint Production and Financing Decisions: Modeling and Analysis (2004, positive): “The paper by Buzacott and Zhang (2004) also considers the connection”