scholarly journals Mathematical Modeling of a Supply Chain with Imperfect Transport and Two-Echelon Trade Credits

2013 ◽  
Vol 2013 ◽  
pp. 1-7
Author(s):  
A. Thangam
Keyword(s):  
Mathematical Modeling ◽  
Mathematical Model ◽  
Supply Chain ◽  
Trade Credit ◽  
Delay Period ◽  
Credit Period ◽  
Numerical Examples ◽  
Proposed Model ◽  
Replenishment Policy ◽  
Trade Credits

Although a smoothly running supply chain is ideal, the reality is to deal with imperfectness in transportations. This paper tries to propose a mathematical model for a supply chain under the effect of unexpected disruptions in transport. Supplier offers the retailer a trade credit period and the retailer in turn offers his customers a permissible delay period. The retailer offers his customers a credit period and he receives the revenue from to , where is the cycle time at the retailer. Under this situation, the three cases such as , , and are discussed. An EPQ-based model is established and retailer's optimal replenishment policy is obtained through mathematical theorems. Finally, numerical examples and sensitivity analysis are presented to felicitate the proposed model.

scholarly journals Ordering Policies of a Deteriorating Item in an EOQ Model under Upstream Partial Order-Quantity-Dependent Trade Credit and Downstream Full Trade Credit

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Zohreh Molamohamadi ◽  
Abolfazl Mirzazadeh
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Inventory Systems ◽  
Order Quantity ◽  
Credit Period ◽  
Eoq Model ◽  
Partial Trade Credit ◽  
Replenishment Policy ◽  
Full Trade Credit ◽  
Credit Contract

In the classical inventory systems, the retailer had to settle the accounts of the purchased items at the time they were received. But in practice, the supplier applies some strategic tools, such as trade credit contract, to enhance his sales channel and offers delay period to his customers to settle the account. Any member of the supply chain may offer full or partial trade credit contract to his downstream level. Full trade credit is the case that the latter is allowed to defer the whole payment to the end of the credit period. In partial trade credit, however, the downstream supply chain member must pay for a proportion of the purchased goods at first and can delay paying for the rest until the end of the credit period. This paper considers a two-level trade credit, where the supplier offers order-quantity-dependent partial trade credit to a retailer, who suggests full trade credit to his customers. An economic order quantity (EOQ) inventory model of a deteriorating item is formulated here, and the Branch and Reduce Optimization Navigator is applied to find the optimal replenishment policy. The sensitivity of the variables on different parameters has been analyzed by applying some numerical examples. The data reveal that increasing the credit periods of the retailer and the customers can decrease and increase the retailer’s total cost, respectively.

Vendor-Buyer Supply Chain Models With Supplier Default Risk Under Selling Price and Trade Credit Period Dependent Demand

2018 ◽  
pp. 156-173
Author(s):  
Chetansinh R. Vaghela ◽  
Nita H. Shah
Keyword(s):  
Supply Chain ◽  
Default Risk ◽  
Trade Credit ◽  
Stackelberg Game ◽  
Model Parameters ◽  
Selling Price ◽  
Lot Size ◽  
Credit Period ◽  
Proposed Model ◽  
Dependent Demand

This chapter focuses on uncooperative supply chain inventory models when a supplier offers a credit period to the retailer for a fixed period of time. The models are studied with trade credit in Nash game and Supplier-Stackelberg game respectively. First, the authors have presented optimal results for centralized and decentralized decisions with selling price dependent demand and without trade credit. Second, the authors have obtained optimal results under the two games using classical optimization. The total joint profit of the supply chain is maximized with respect to initial lot size, selling price, and trade credit period. Numerical examples are provided to authenticate the proposed model and to provide some managerial insights. Also through sensitivity analysis, important model parameters are examined.

Retailer’s Ordering Policy in a Supply Chain when Demand is Price and Credit Period Dependent

2012 ◽  
pp. 262-277
Author(s):  
Chandra K. Jaggi ◽  
Amrina Kausar
Keyword(s):  
Sensitivity Analysis ◽  
Supply Chain ◽  
Great Risk ◽  
Trade Credit ◽  
Inventory Model ◽  
Partial Credit ◽  
Credit Period ◽  
Numerical Examples ◽  
On Demand ◽  
Ordering Policy

Trade credit is a well established promotional tool in the present competitive world and its impact on demand cannot be ignored. Businesses often use trade credit to increase their market share and, in turn, the profit. Undoubtedly, trade credit plays a great role in increasing the demand but it also involves a great risk of non-payment. In order to reduce the risk of non-payment, businessman at times use a partial trade credit policy in which they demand a certain percentage of the total amount from the customer at the time of purchase and offers the credit for the remaining amount. Furthermore, it is also observed that the demand of FMCG is highly price sensitive. In order to see the effect of credit and price together, on demand, the retailer’s demand is taken as a function of price and credit period. Moreover it is assumed that the supplier offers the full credit to the retailer but the retailer passes a partial credit to customers. The inventory model, determines the optimal replenishment time, credit period, and price for the retailer that maximizes profit. Numerical examples have been provided to support the model followed by the comprehensive sensitivity analysis.

scholarly journals An Optimal Replenishment Policy for the EPQ Model with Permissible Delay in Payments

2016 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Shih-Ming Ou ◽  
Kuo-Kuang Chang
Keyword(s):  
Trade Credit ◽  
Global Optimum ◽  
Credit Period ◽  
Proposed Model ◽  
Replenishment Policy ◽  
Epq Model ◽  
Total Inventory ◽  
Global Optimal ◽  
Delay In Payments ◽  
Relevant Cost

Most of the past researches on economic replenishment quantity did not consider the trade credit period. In practice, however, companies in Taiwan have shown that taking the trade credit period into account when they are making inventory decisions decreases costs substantially. The aim of this paper is to develop an inventory model that incorporates a delay in payments to minimize the total inventory-relevant cost. The optimal replenishment policy of the proposed model is identified by utilizing the global optimum conditions and non-constrained quadratic nonlinear programming. The results show that the existence of global optimal inventory cycle under the condition of total cost function is convex. Accordingly, the proposed model can assist managers in effectively addressing EPQ issue under competitive market.

The Generation Principle and Mathematical Models of Double-Enveloping Internal Gear Pairs

2015 ◽  
Author(s):  
Xuan Li ◽  
Bingkui Chen ◽  
Yawen Wang ◽  
Guohua Sun ◽  
Teik C. Lim
Keyword(s):  
Mathematical Model ◽  
Load Capacity ◽  
Geometrical Shape ◽  
Gear Pair ◽  
Numerical Examples ◽  
Proposed Model ◽  
General Mathematical Model ◽  
Meshing Characteristics ◽  
Internal Gear ◽  
Tooth Pair

In this paper, the planar double-enveloping method is presented for the generation of tooth profiles of the internal gear pair for various applications, such as gerotors and gear reducers. The main characteristic of this method is the existence of double contact between one tooth pair such that the sealing property, the load capacity and the transmission precision can be significantly improved as compared to the conventional configuration by the single-enveloping theory. Firstly, the generation principle of the planar double-enveloping method is introduced. Based on the coordinate transformation and the envelope theory, the general mathematical model of the double-enveloping internal gear pair is presented. By using this model, users can directly design different geometrical shape profiles to obtain a double-enveloping internal gear pair with better meshing characteristics. Secondly, to validate the effectiveness of the proposed model, specific mathematical formulations of three double-enveloping internal gear pairs which apply circular, parabolic and elliptical curves as the generating curves are given. The equations of tooth profiles and meshing are derived and the composition of tooth profiles is analyzed. Finally, numerical examples are provided for an illustration.

Methods of Mathematical Modeling of the Leaching Process of Cobalt-Containing Solutions

2021 ◽  
Vol 316 ◽  
pp. 661-666
Author(s):  
Nataliya V. Mokrova
Keyword(s):  
Mathematical Modeling ◽  
Mathematical Model ◽  
Chemical Kinetics ◽  
Group Method ◽  
Data Handling ◽  
Multistage Processes ◽  
Leaching Process ◽  
Proposed Model ◽  
Simulation Results ◽  
The Mathematical Model

Current cobalt processing practices are described. This article discusses the advantages of the group argument accounting method for mathematical modeling of the leaching process of cobalt solutions. Identification of the mathematical model of the cascade of reactors of cobalt-producing is presented. Group method of data handling is allowing: to eliminate the need to calculate quantities of chemical kinetics; to get the opportunity to take into account the results of mixed experiments; to exclude the influence of random interference on the simulation results. The proposed model confirms the capabilities of the group method of data handling for describing multistage processes.

Optimal Ordering for Deteriorating Items of Fixed-Life with Quadratic Demand and Two-Level Trade Credit

2016 ◽  
pp. 1-16 ◽  
Author(s):  
Nita H. Shah ◽  
Mrudul Yogeshkumar Jani
Keyword(s):  
Sensitivity Analysis ◽  
Decision Maker ◽  
Trade Credit ◽  
Life Time ◽  
Deteriorating Items ◽  
Total Cost ◽  
Credit Period ◽  
Numerical Examples ◽  
Optimal Ordering ◽  
Purchase Quantity

This chapter studies the retailer's ordering policies when items in the stocking system has fixed life time and subject to deteriorate with time. The demand is considered to be quadratically decreasing. The supplier offers credit period to the retailer which in turn is partially passed on to customer. The retailer is the decision maker and the objective is to minimize the total cost of the system by ordering optimum purchase quantity. Numerical examples are given to find the best possible scenario for the retailer. Sensitivity analysis is carried out to derive player's insights.

Supply Chain Design of Manufacturing Processes with Blending Technologies

2017 ◽  
Vol 261 ◽  
pp. 509-515 ◽  
Author(s):  
Ágota Bányainé Tóth ◽  
Béla Illés ◽  
Fabian Schenk
Keyword(s):  
Mathematical Model ◽  
Linear Programming ◽  
Supply Chain ◽  
Literature Review ◽  
Linear Programming Problem ◽  
Integrated Approach ◽  
Integrated Model ◽  
Supply Chain Design ◽  
Manufacturing Processes ◽  
Proposed Model

Blending technologies play an important role in manufacturing. The design and operation of manufacturing processes using blending technologies represent a special range of manufacturing related logistics because the integrated approach of technological and logistic parameters is very significant. This research proposes an integrated model of supply of manufacturing processes using blending technologies. After a careful literature review, this paper introduces a mathematical model to formulate the problem of supply chain design for blending technologies. The integrated model includes the optimal purchasing strategy depending on the characteristics of components to be mixed in the desired proportion and the costs of supply. The integrated model will be described as a linear programming problem. Numerical results with different datasets demonstrate how the proposed model takes technological and logistic aspects into consideration.

Retailer’s Ordering and Discounting Policies Under Advance Sales Discount and Trade Credit Based on Sharia

2012 ◽  
Vol 59 (2) ◽  
Author(s):  
Chairul Saleh ◽  
Achmad Chairdino Leuveano ◽  
Reny Lagaida ◽  
Md. Razali Muhammad
Keyword(s):  
Mathematical Model ◽  
Cycle Time ◽  
Trade Credit ◽  
Price Discount ◽  
Inventory Cost ◽  
Conventional Model ◽  
Credit Period ◽  
Model Based ◽  
Advance Sales ◽  
Replenishment Cycle

The use of conventional model to minimize the inventory cost creates a disturbance between the sellers and buyers. It creates a usury since the payment conducts to interest paid and interest earned. In this paper, sharia principle is implemented, that is Bai Al Istishna which allows credit period and margin agreement as the payment. The model is engaged to replenishment cycle time and price discount policy to attract the customer’s demand which based on sharia principle. This paper provides a useful mathematical model based on sharia principles in order to usury/interest can be eliminated in the trading process.

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