Optimal single-period inventory financing decisions with stochastic demand

Inventory financing business plays an important part in solving financing difficulty of small-and-medium-sized enterprises (SMEs). This paper develops single-period decision models from the perspective of the borrowing company. At first, we will study the borrowing company´s optimal financing decision, given initial inventory quantity. Then we consider ordering decision and financing decision simultaneously, and construct a joint decision-making model. We also conduct sensitivity analysis to study how relevant parameters affect the optimal decisions of the borrowing company.