INTEGRATED MODEL FOR ACCOUNTS RECEIVABLE MANAGEMENT.

Zvi Lieber*, Yair E. Orgler

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The purpose of this paper is to present an integrated model of accounts receivable. The model incorporates the major components of credit and collection policies such as the cash discount, credit period and charges for late payments. It considers the investment in accounts receivable, losses from bad debts and the impact of credit terms on sales. The objective is to maximize the present value of net earnings from accounts receivable. After deriving the general model, a simplified version is solved by classical optimization techniques under various sets of assumptions that are gradually relaxed.

Original languageEnglish
Pages (from-to)212-219
Number of pages8
JournalManagement Science
Volume22
Issue number2
DOIs
StatePublished - 1975

Fingerprint

Dive into the research topics of 'INTEGRATED MODEL FOR ACCOUNTS RECEIVABLE MANAGEMENT.'. Together they form a unique fingerprint.

Cite this