Trade Credit Term Determination and Efficiency Invariant Revenue Sharing

This paper first proposes an approximation solution to the optimal payment time and credit term with new features of the supplier unit cost function by applying Schwartz's financing motive theory. Then we solve the problem of efficiency preserving allocating coordination surplus in DEA framework. An explicit formula of allocation is obtained. Two kinds of allocation schemes were contrasted in numerical experiments. Efficiency invariant allocation is proved to be more realistic than Aumann-Shapley schemes.