Abstract: This paper applies the supply chain financial management to deal with the cash constraints of the newsboy model under conditions of permissible delay in payments.In the new model,shortage is allowed, the sales of the product,financing interest and credit period are also considered.Then,we solve the model and obtain a series of useful management conclusions through sensitivity analysis and comparison with the classical newsboy model.The proposed model provides a new method for the retailers to administrate the cash and inventory.

Key words: financial supply chain, inventory management, delay in payments, the newsboy model