scholarly journals The impact for retailer’s policy in supply chain system under trade credit and quantity discounts

2020 ◽  
Author(s):  
Tien-Yu Lin ◽  
Ying-Chun Li
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Optimal Solution ◽  
Chain Model ◽  
Quantity Discounts ◽  
Setup Cost ◽  
Supply Chain System ◽  
Coordination Systems ◽  
The Impact

This paper develops a powerful retailer inventory model under trade credit and quantity discounts in which the retailer’s order quantity is calculated for each setup and shipped in equal lots over multiple deliveries. Furthermore, the trade credit condition is that the retailer must make partial payments in cash for a given number of sub-shipments, with the remaining balance paid in trade credit time that expires after the inventory is depleted. This integrated powerful retailer supply chain model has not yet been discussed in previous supply chain coordination systems literature. We propose an annual total cost function and properties and develop theorems to illustrate that a unique optimal solution minimizes the relevant cost per year. We also develop an efficient algorithm to determine the optimal set of the replenishment time and the number of shipments. Numerical examples are provided to demonstrate the proposed model and algorithm. A sensitivity analysis is explored to examine the effects of four important parameters (i.e., setup cost, unit holding cost, interest rate, and receiving cost) on the optimal strategy. Finally, managerial insights are drawn

scholarly journals Coordinating Supply-Chain Management under Stochastic Fuzzy Environment and Lead-Time Reduction

Mathematics ◽  
2019 ◽  
Vol 7 (5) ◽  
pp. 480 ◽  
Author(s):  
Asif Iqbal Malik ◽  
Biswajit Sarkar
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Lead Time ◽  
Optimal Solution ◽  
Chain Model ◽  
Setup Cost ◽  
Chain Management ◽  
The Impact ◽  
Collaborative Supply Chain Management

In this paper, a supply-chain (SC) coordination method based on the lead-time crashing is proposed for a seller–buyer system. By considering different transportation modes, we control the lead-time (LT) variability. For the first time, we have attempted to determine the impact of the reliable and unreliable seller in a continuous-review supply-chain model under the stochastic environment. The authors discussed two reliability cases for the seller. First, we consider the seller is unreliable and in the second case, the seller is reliable. In addition, the demand during the lead time is stochastic with the known mean and variance. The proposed approach tries to find an optimal solution that performs well without a specific probability distribution. Besides, a discrete investment is made to reduce the setup cost, which will indirectly help supply-chain members to increase the total profit of the system. In the proposed model, the seller motivates the buyer by reducing lead time to take part in coordinating decision-making for the system’s profit optimization. We derive the coordination conditions for both members, the seller and the buyer, under which they are convinced to take part in the cooperative decision-making plan. Therefore, lead-time crashing is the proposed incentive mechanism for collaborative supply-chain management. We use a fixed-charge step function to calculate the lead-time crashing cost for slow and fast shipping mode. We give two numerical examples to validate the proposed models and demonstrate the service-level enhancement under the collaborative supply-chain management in case of an unreliable seller. Concluding remarks and future extensions are discussed at the end.

scholarly journals The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-11 ◽  
Author(s):  
Wei Xu ◽  
Zhaotong Lian ◽  
Xifan Yao
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Stackelberg Games ◽  
Optimal Decision ◽  
Chain Model ◽  
Complex Product ◽  
Coordination Model ◽  
Technology Investment ◽  
The Impact

Motivated by the complex product with the feature about error-prone assembly system and supply chain inventory inaccuracy, this paper elaborates on the impact of information technology investment on complex product by establishing a three-stage supply chain model involving two suppliers, one manufacturer, and retailer which carried out Stackelberg games. In addition, it not only compares the manufacturer and the retailer’s optimal decision and maximum profit under the situation of the information asymmetry and free information sharing, but also analyzes their market behavior and changes in market performance. Meanwhile, it points out that the downstream in supply chain masters more information about market demands compared to the upstream one. The optimal cost threshold values of technology investment are also examined both for the centralized and the decentralized scenarios utilizing quantitative and modeling methods. By analyzing and comparing the optimal profit with or without investment on information technology, it establishes a supply chain coordination model which boosts the application of information technology. At the same time, it offers the conditions on which the upstream and downstream enterprises can coordinate with one another. The results of this paper have contributed significantly to making the price and ordering decisions on whether RFID should be adopted among members of the supply chain. Finally, we present numerical analyses, and several extensions of the model are considered as well.

scholarly journals Study of the Bullwhip Effect in a Multistage Supply Chain with Callback Structure considering Two Retailers

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Junhai Ma ◽  
Liqing Zhu ◽  
Ye Yuan ◽  
Shunqi Hou
Keyword(s):  
Supply Chain ◽  
Moving Average ◽  
Bullwhip Effect ◽  
Lead Times ◽  
Chain Model ◽  
Supply Chain System ◽  
Forecasting Method ◽  
Supply Chain Model ◽  
The Impact ◽  
Demand Processes

With the purpose of researching the bullwhip effect when there is a callback center in the supply chain system, this paper establishes a new supply chain model with callback structure, which has a material supplier, a manufacture, and two retailers. The manufacture and retailers all employ AR(1) demand processes and use order-up-to inventory policy when they make order decisions. Moving average forecasting method is used to measure the bullwhip effect of each retailer and manufacture. We investigate the impact of lead-times of retailers and manufacture, forecasting precision, callback index, and marketing share on the bullwhip effect of both retailers and manufacture. Then we use the method of numerical simulation to indicate the different parameters in this supply chain. Furthermore, this paper puts forward some suggestions to help the enterprises to control the bullwhip effect in the supply chain with callback structure.

scholarly journals Imperfect production supply chain model considering price-sensitive demand and quantity discounts under free distribution approach

2020 ◽  
Author(s):  
Hemapriya S ◽  
uthayakumar R
Keyword(s):  
Lead Time ◽  
Optimal Solution ◽  
Chain Model ◽  
Quantity Discounts ◽  
Order Quantity ◽  
Defective Items ◽  
Free Distribution ◽  
Supply Chain Model ◽  
Precautionary Measures ◽  
The Impact

During production process, we may experience with some imperfect things disregarding every single precautionary measures. The imperfect things are each of two dismissed promptly at the season of production or reworked and sold as great ones or customers are given plenty discount to keep up the generosity of the organization. This article considers about this practical circumstances and includes price-sensitive demand. As production propels, we have defective items as a part of result. The customer’s demand is pretended to be price-sensitive dependent to increment the quantity of offers, and the vendor offers a quantity discount to persuade the buyer to purchase more amounts. Here, the lead time demand follows a free distribution. Therefore, the integrated model is used to find the optimizing values for the total number of shipments, order quantity, safety factor and retail price. An efficient iterative algorithm is designed to obtain the optimal solution of the model numerically and sensitivity analysis table formulate to show the impact of different parameter.

scholarly journals Effects of Carbon-Emission and Setup Cost Reduction in a Sustainable Electrical Energy Supply Chain Inventory System

Energies ◽  
2019 ◽  
Vol 12 (7) ◽  
pp. 1226 ◽  
Author(s):  
Umakanta Mishra ◽  
Jei-Zheng Wu ◽  
Anthony Shun Fung Chiu
Keyword(s):  
Power Generation ◽  
Supply Chain ◽  
Carbon Emission ◽  
Optimal Solution ◽  
Electrical Energy ◽  
Decision Variable ◽  
Setup Cost ◽  
Supply Chain System ◽  
Transmission Cost ◽  
Demand Rate

This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights.

scholarly journals Coordinated Vendor-Buyer Supply Chain Model With Transportation Cost Under Diesel Price Uncertainty

2021 ◽  
Author(s):  
Amanpreet Singh Pabla
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Transportation Cost ◽  
Optimal Order ◽  
Chain Model ◽  
Price Uncertainty ◽  
Setup Cost ◽  
Coordination Model ◽  
Size Number ◽  
Multiple Variables

This project focuses on supply chain coordination model between vendor and buyer with emphasis on transportation cost. The objective is to minimize the supply chain cost which comprises of order cost, setup cost, vendor holding, buyer holding, shortage cost and finally transportation cost. The model developed in this project determines the optimal order size, number of shipments, and reorder point while simultaneously accounting for the uncertainties in diesel price. Uncertainty in price of diesel is also developed using mean reverting process. To date, the impacts diesel price uncertainty and transportation cost in the supply chain policy is not very well known. This report provides an analysis by altering the multiple variables impacting transportation costs such as the truck type, feature, environmental condition, route, weight and driving style. This analysis demonstrates how changes in truck variables impact the expected total cost thereby making it extremely critical for corporations to mitigate costs strategically.

scholarly journals Supply chain coordination of biomass moulding fuel under random supply and cyclical demand

2019 ◽  
Vol 1 (1) ◽  
pp. 106-118
Author(s):  
Xinning Li ◽  
Kun Fan ◽  
Lu Wang ◽  
Lang Zhou
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Biomass Energy ◽  
Chain Model ◽  
Online Information ◽  
Supply Chain System ◽  
Content Type ◽  
Fuel Supply

Purpose The purpose of this paper is to design a contract to coordinate the biomass molding fuel supply chain consisting of a supplier with uncertain supply and a producer with cyclical demand as well as improve the profit of this supply chain. Design/methodology/approach In this paper, the supply chain model was build and all the variables and assumptions are set. Stackelberg game model was used to analyze and solve the problem. Furthermore, the authors give numerical examples and result analysis on the basis of data coming from field study and online information about a real biomass fuel supply chain. Findings The wholesale price with shortage penalty contract the authors proposed can coordinate the supply chain. And as the dominator of the supply chain, the producer can realize the redistribution of profits within the supply chain by determine the contract parameters. Research limitations/implications This one-to-one supply chain is a basic of complex supply chain system. Multi-to-one, one-to-multi and multi-to-multi supply chain can be studied in the future. Originality/value The results obtained in this paper can be used as a reference for enterprises in biomass energy supply chain to make contracts and realize the long-term co-operations among supply chain members.

scholarly journals Supply Chain Model with Stochastic Lead Time, Trade-Credit Financing, and Transportation Discounts

2017 ◽  
Vol 2017 ◽  
pp. 1-14 ◽  
Author(s):  
Sung Jun Kim ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Trade Credit ◽  
Coordination Mechanism ◽  
Chain Model ◽  
Credit Policy ◽  
Setup Cost ◽  
Credit Period ◽  
Supply Chain Model ◽  
Credit Financing

This model extends a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade-credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced, where the supplier offers trade-credit-period to the buyer. For buyer, the backorder rate is considered as variable. There are two investments to reduce setup cost and to improve quality of products. The model assumes lead time-dependent backorder rate, where the lead time is stochastic in nature. By using the trade-credit policy, the model gives how the credit-period would be determined to achieve the win-win outcome. An iterative algorithm is designed to obtain the global optimum results. Numerical example and sensitivity analysis are given to illustrate the model.

scholarly journals Optimal Strategies of Retailers Facing Potential Crisis in an Online-to-Offline Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Wei-hao Wang ◽  
Jin-song Hu
Keyword(s):  
Supply Chain ◽  
Hazard Rate ◽  
Optimal Strategies ◽  
Chain Model ◽  
Planning Period ◽  
Supply Chain System ◽  
Investment Level ◽  
Brand Crisis ◽  
Two Phases ◽  
The Impact

We confine our interest to the O2O (online-to-offline) supply chain system consisting of an online retailer and an offline retailer. Given that the brand they sell may encounter a brand crisis that will damage the goodwill, we formulate an O2O supply chain model with the impact of random crisis to explore the countermeasures of retailers when facing a potential crisis. After analysis, we find the following: (1) The crisis happened earlier with the increase of hazard rate and retailers should lower their investment in the precrisis stage. (2) The existence of crisis divides the whole planning period into two phases and make retailers have different phase preference in different scenarios. In a word, retailers will pay more attention to the postcrisis stage with the increase of hazard rate and damage rate and therefore invest more in the postcrisis stage. (3) Crisis will decrease the investment level of retailers and therefore make the goodwill and profits lower than when there is no crisis.

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