1. This article compares different payment policies to boost demand for sellers.
2. It considers the trade-off between default/disaster risk and demand when offering Advance, Cash, Credit or Disaster Grace Period (ACCD) payment options.
3. The article aims to identify the optimum replenishment cycle and payments period for a seller’s profit.
The article is generally reliable and trustworthy in its content, as it provides an in-depth analysis of the various payment policies available to sellers to boost demand. The article also provides a detailed discussion of the trade-off between default/disaster risk and demand when offering ACCD payment options, as well as an examination of the impact of various parameters on profit. Furthermore, the article offers managerial insights on which payment option to choose in a particular setting to maximize profit.
However, there are some potential biases that should be noted in this article. For example, while the article does provide an overview of potential risks associated with offering ACCD payment options, it does not explore counterarguments or present both sides equally. Additionally, there is no evidence provided for some of the claims made in the article, such as those related to increasing demand or smoother cash flow throughout the supply chain due to ACCD payment options. Finally, there is some promotional content included in this article that could be seen as biased towards certain payment policies over others.