b) She received payment minus the discount This means that the discount reduced the total amount paid. A discount expressed as 2/10, n/30 means that the customer is offered a discount of 2% if they honor their obligation to make payment within 10 days, but if this period passes they should pay the full amount in 30 days (Warren, Reeve and Duchac, 2013)
Modern retailers have taken to using modelling to help optimizing their merchandising decisions. In particular, such modeling can help them to understand different demand conditions (Piotrowski & Sladkowski, 2001)
An additional consideration is the role that returns and reverse logistics play in this. Returns are an inevitable part of the retailing business, so having inventory management that takes returns into account, and builds in an efficient reverse logistics system, can lower the cost of returns to the company, again something that tightens the cash conversion cycle and helps the company become more profitable (Stock, Speh & Shear, 2006)