ON THE INTEGRATION OF PRODUCTION, INVENTORY AND TRADE-CREDIT POLICIES

The primary objective of this paper is to highlight the need for the integration of procurement, production and marketing strategies. This is accomplished through the development of a model for a small firm, where the objective is the maximization of the present value of profits within an infinite horizon framework. Other features include a JIT-like procurement system, a continuous production situation and a combination of cash discounts and credit period to stimulate sales. A numerical example is presented to illustrate the main features of the study.