Optimal single-period inventory financing decisions with stochastic demand

Author(s):  
Jiayan Xu ◽  
Ke Fu
2015 ◽  
Vol 18 (1-2) ◽  
pp. 179-196 ◽  
Author(s):  
Hongyan Hu ◽  
Zhenji Zhang ◽  
Wenlong Zhou

Author(s):  
DING DING ◽  
JIAN CHEN

This paper studies a supply chain consisting of two suppliers and an assembler who also acts as a retailer in a single period model. The suppliers provide complementary modules to the assembler and the latter assembles the final products and sells them to meet a stochastic demand. Each supplier can improve his performance by offering a return policy to the assembler while the best contract depends on that offered by the other supplier. We show that the non-cooperative contracts game between the firms has a unique and stable equilibrium in which the optimal return policies happen to fully coordinate the whole channel. Moreover, the suppliers still have the rights to negotiate with the assembler independently to share their profits properly. With such properties, the suppliers are encouraged to offer return policies to the assembler by following a simple rule derived from the favorable equilibrium, which will lead to a win-win-win situation.


Omega ◽  
2008 ◽  
Vol 36 (5) ◽  
pp. 808-824 ◽  
Author(s):  
F.J. Arcelus ◽  
Satyendra Kumar ◽  
G. Srinivasan

2014 ◽  
Vol 2 (4) ◽  
pp. 358-365
Author(s):  
Zhonghua Ma

AbstractWe analyze the retailer’s optimal order with capital constraint under stochastic demand. We consider the impact of external financing, that is inventory financing, and the internal financing, that is trade credit, on the order strategy of retailer separately. We establish revenue model of retailer and solve, and give revenue of retailer and supplier respectively. Finally, we give the impact of own funds on the retailer’s order quantity, retailer’s revenue, supplier’s revenue, as well as the impact on the overall revenue gains of the supply chain. And some analysis and statement are also given in the end.


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