Decision-making Research about Cash Discounts Offered by Vendors

摘要

This paper mainly discusses how to make the decision-making about whether the supplier's downstream enterprises should enjoy cash discounts. First, for the limitation of knowledge in current textbooks, this paper illustrates the difference and the different method of calculation between the real cost of capital and the nominal cost of capital. Second, analyzing the decision-making process in each case that may exist in a cash discount, and summarizing the decision-making steps, drawing the decision-making flowchart. Third, promoting the decisionmaking analysis process with a cash discount to a number of cash discounts, and introducing the decision tree diagram of a general form to facilitate the enterprises.