Business, Management and Accounting
5 years ago

Supplier payment policy changes impact inventory turnover and supplier operations significantly.

Studies in Business and Economics
A Close Look Into Supplier Policy Changes in Response to Their Buyers’ Financial Stress
Jamol Abdiev, Gurkan Akalin

Paper Summary

Trade credit, where buyers can purchase now and pay later, is crucial for many businesses. Changes in buyer payment policies can impact suppliers. This study looks at how changes in buyer payment policies affect supplier operations, particularly inventory. The research also explores how changes in a company's accounts payable and accounts receivable impact inventory turnover.

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