A note on dynamic programming in accounts receivable management

Y.M.I. Dirickx, K.-P. Kistner

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    Abstract

    The paper considers a dynamic programming formulation of the accounts receivable problem for single outstanding amounts. An optimal collection policy can be computed efficiently by invoking a “planning horizon” result that determines a time period beyond which the decision process cannot extend. The optimality of so called monotone policies is shown under rather intuitive restrictions on the collection probabilities.
    Original languageUndefined
    Pages (from-to)221-224
    JournalOR Spectrum = OR Spektrum
    Volume3
    Issue number4
    DOIs
    Publication statusPublished - 1982

    Keywords

    • IR-85788

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