Note---The Bierman-Hausman Credit Granting Model: A Note

Venkat Srinivasan and Yong H. Kim
Additional contact information
Venkat Srinivasan: College of Business Administration, Northeastern University, Boston, Massachusetts 02115
Yong H. Kim: College of Business Administration, University of Cincinnati, Cincinnati, Ohio 45221

Management Science, 1987, vol. 33, issue 10, 1361-1362

Abstract: To date, the Bierman-Hausman (Bierman, H., Jr., W. H. Hausman. 1970. The credit granting decision. Management Sci. 16 B519--B532.) model remains the most rigorous normative effort in credit granting. This note points out that the procedure suggested by Bierman and Hausman for considering the time value effect is valid only under the extremely unrealistic assumption of a firm being able to simultaneously collect its receivables and make payments to its suppliers. A simple modification is presented to incorporate more realistic cash flow timing assumptions.

Keywords: credit granting; dynamic programming; working capital management (search for similar items in EconPapers)
Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.33.10.1361 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:33:y:1987:i:10:p:1361-1362

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().