Manufacturer–retailer supply chain model with payment time-dependent discount factor under two-level trade credit

2021 ◽  
pp. 1-13
Author(s):  
R. Bhattacharjee ◽  
T. Maiti ◽  
B. C. Giri
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Time Dependent ◽  
Discount Factor ◽  
Chain Model ◽  
Supply Chain Model

scholarly journals Effects of Variable Production Rate and Time-Dependent Holding Cost for Complementary Products in Supply Chain Model

2017 ◽  
Vol 2017 ◽  
pp. 1-13 ◽  
Author(s):  
Mitali Sarkar ◽  
Sun Hur ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Graphical Representation ◽  
Stackelberg Game ◽  
Time Dependent ◽  
Chain Model ◽  
Complementary Products ◽  
Supply Chain Model ◽  
Holding Cost ◽  
Variable Production

Recently, a major trend is going to redesign a production system by controlling or making variable the production rate within some fixed interval to maintain the optimal level. This strategy is more effective when the holding cost is time-dependent as it is interrelated with holding duration of products and rate of production. An effort is made to make a supply chain model (SCM) to show the joint effect of variable production rate and time-varying holding cost for specific type of complementary products, where those products are made by two different manufacturers and a common retailer makes them bundle and sells bundles to end customers. Demand of each product is specified by stochastic reservation prices with a known potential market size. Those players of the SCM are considered with unequal power. Stackelberg game approach is employed to obtain global optimum solution of the model. An illustrative numerical example, graphical representation, and managerial insights are given to illustrate the model. Results prove that variable production rate and time-dependent holding cost save more than existing literature.

scholarly journals Optimal ordering policy in a two-echelon supply chain model with variable backorder and demand uncertainty

2020 ◽  
Author(s):  
Sumon Sarkar ◽  
B. C. Giri
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Demand Uncertainty ◽  
Trade Credit ◽  
Chain Model ◽  
Order Quantity ◽  
Optimal Decisions ◽  
Solution Algorithms ◽  
Supply Chain Model ◽  
Credit Financing

The paper investigates a two-echelon production-delivery supply chain model for products with stochastic demand and backorder-lost sales mixture under trade-credit financing. The manufacturer delivers the retailer's order quantity in a number of equal-sized shipments. The replenishment lead-time is such that it can be crashed to a minimum duration at an additional cost that can be treated as an investment. Shortages in the retailer's inventory are allowed to occur and are partially backlogged with a backlogging rate dependent on customer's waiting time. Moreover, the manufacturer offers the retailer a credit period which is less than the reorder interval. The model is formulated to find the optimal solutions for order quantity, safety factor, lead time, and the number of shipments from the manufacturer to the retailer in light of both distribution-free and known distribution functions. Two solution algorithms are provided to obtain the optimal decisions for the integrated system. The effects of controllable lead time, backorder rate and trade-credit financing on optimal decisions are illustrated through numerical examples.

scholarly journals Lead-time Dependent Ordering Cost Reduction and Trade-credit: A Supply Chain Model with Stochastic Demand and Rework

2020 ◽  
Vol 8 (5) ◽  
pp. 5113-5117
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Lead Time ◽  
Trade Credit ◽  
Chain Model ◽  
Lot Size ◽  
Expected Cost ◽  
Production Run ◽  
Supply Chain Model ◽  
Ordering Cost Reduction

This study focuses on an integrated vendor-buyer supply chain model where the lead-time and ordering cost reduction act dependently. The lead time demand of a product follows a normal distribution. The manufacturing process is imperfect. During production run time, a certain percentage of defective products are produced, which are immediately reworked. Trade-credit financing has been taken into consideration. The goal of this study is to minimize the joint total expected cost by providing an inter-dependent reduction strategy of lead-time and ordering cost along with the determination of the optimal values of lead-time, number of deliveries, order lot size, ordering cost, lead-time crashing cost, and the joint total expected cost. A solution algorithm and a numerical example are presented to illustrate and establish the integrated model. This model can be used in textiles, automobiles and computers industries.

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