To solve the problem of setting threshold default risk criterion to select retailer eligible for trade credit granting, a novel method of solving simultaneous equations is proposed. This method is based on the bilevel...To solve the problem of setting threshold default risk criterion to select retailer eligible for trade credit granting, a novel method of solving simultaneous equations is proposed. This method is based on the bilevel programming modeling of trade credit decisions as an interaction between supplier and retailer. First, the bilevel programming is set up where the supplier decides on credit terms at the top level considering a retailer's default risk, and the retailer determines the order quantity at the lower level in response to the credit terms offered. By solving this bilevel programming, the relationship between the optimal terms and the corresponding default risk can be derived. Second, set the extreme scenario where the threshold default risk is approached as the point causing a zero marginal profit to the supplier. Another equation describing this particular scenario can also be derived. Thus, a system of two equations with two unknown variables can be obtained where the exact threshold default risk criterion can be found by solving them. A numerical example is presented as an illustration of the method proposed. It shows that the threshold criterion can be uniquely determined when the financial costs, inventory costs, and the marketing parameters of supplier and buyer are specified.展开更多
Short-term memory allows individuals to recall stimuli, such as numbers or words, for several seconds to several minutes without rehearsal. Although the capacity of short-term memory is considered to be 7 ±?2 ...Short-term memory allows individuals to recall stimuli, such as numbers or words, for several seconds to several minutes without rehearsal. Although the capacity of short-term memory is considered to be 7 ±?2 items, this can be increased through a process called chunking. For example, in Japan, 11-digit cellular phone numbers and 10-digit toll free numbers are chunked into three groups of three or four digits: 090-XXXX-XXXX and 0120-XXX-XXX, respectively. We use probability theory to predict that the most effective chunking involves groups of three or four items, such as in phone numbers. However, a 16-digit credit card number exceeds the capacity of short-term memory, even when chunked into groups of four digits, such as XXXX-XXXX-XXXX-XXXX. Based on these data, 16-digit credit card numbers should be sufficient for security purposes.展开更多
基金The National Natural Science Foundation of China (No.70502005)
文摘To solve the problem of setting threshold default risk criterion to select retailer eligible for trade credit granting, a novel method of solving simultaneous equations is proposed. This method is based on the bilevel programming modeling of trade credit decisions as an interaction between supplier and retailer. First, the bilevel programming is set up where the supplier decides on credit terms at the top level considering a retailer's default risk, and the retailer determines the order quantity at the lower level in response to the credit terms offered. By solving this bilevel programming, the relationship between the optimal terms and the corresponding default risk can be derived. Second, set the extreme scenario where the threshold default risk is approached as the point causing a zero marginal profit to the supplier. Another equation describing this particular scenario can also be derived. Thus, a system of two equations with two unknown variables can be obtained where the exact threshold default risk criterion can be found by solving them. A numerical example is presented as an illustration of the method proposed. It shows that the threshold criterion can be uniquely determined when the financial costs, inventory costs, and the marketing parameters of supplier and buyer are specified.
文摘Short-term memory allows individuals to recall stimuli, such as numbers or words, for several seconds to several minutes without rehearsal. Although the capacity of short-term memory is considered to be 7 ±?2 items, this can be increased through a process called chunking. For example, in Japan, 11-digit cellular phone numbers and 10-digit toll free numbers are chunked into three groups of three or four digits: 090-XXXX-XXXX and 0120-XXX-XXX, respectively. We use probability theory to predict that the most effective chunking involves groups of three or four items, such as in phone numbers. However, a 16-digit credit card number exceeds the capacity of short-term memory, even when chunked into groups of four digits, such as XXXX-XXXX-XXXX-XXXX. Based on these data, 16-digit credit card numbers should be sufficient for security purposes.
