| Summary: | 碩士 === 中原大學 === 企業管理研究所 === 96 === The time value of money is one of the most important concepts in financial management. A dollar received today is worth more than a dollar received in any future time from now. A firm generally pays out costs at the beginning of an investment planning horizon immediately, but receives revenues continuously during an investment project or receives revenues at the end of an investment planning horizon. In order to compare the revenues and costs, financial managers must use the concept of the time value of money to bring the revenues and costs of an investment back to the present. Without recognizing the existence of the time value of money, it is impossible to evaluate and compare an investment project with revenues and costs occurring in different periods. So, the main purpose of this paper is to discuss retailer’s optimal inventory model under trade credit taking account of present value. For two levels of trade credit, the supplier will offer the retailer a delay period (M) to simulate his retailer demand, and the retailer will also adopt the trade credit policy ( ) to simulate his customer demand. When the cycles of an investment planning horizon is infinite, the function of the total relevant cost is discussed under three different situations. Under certain conditions, the function of the total relevant cost is convex, and a theorem is developed to determine the optimal ordering policies for the retailer. If we can not prove the function of the total relevant cost is convex or not, we can still develop a theorem to determine the optimal ordering policies for the retailer. Finally, some numerical examples are given to illustrate the theorem obtained in this paper.
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