Supply chain optimal ordering policy under two-level trade credit with default risk

2022 ◽  
Vol 16 (3) ◽  
pp. 1
Author(s):  
Chengfeng Wu ◽  
Qiuhong Zhao ◽  
Chunfeng Xu
Keyword(s):  
Supply Chain ◽  
Default Risk ◽  
Trade Credit ◽  
Ordering Policy ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

scholarly journals Two echelon partial trade credit financing in a supply chain derived algebraically

2012 ◽  
Vol 22 (2) ◽  
pp. 163-182 ◽  
Author(s):  
Chandra Jaggi ◽  
Mona Verma
Keyword(s):  
Supply Chain ◽  
Credit Risk ◽  
Trade Credit ◽  
Algebraic Approach ◽  
Inventory Problem ◽  
Partial Trade Credit ◽  
Ordering Policy ◽  
Credit Financing ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

Trade credit financing has become a powerful tool to improve sales & profit in an industry. In general, a supplier/retailer frequently offers trade credit to its credit risk downstream member in order to stimulate their respective sales. This trade credit may either be full or partial depending upon the past profile of the downstream member. Partial trade credit may be offered by the supplier/retailer to their credit risk downstream member who must pay a portion of the purchase amount at the time of placing an order and then receives a permissible delay on the rest of the outstanding amount to avoid non-payment risks. The present study investigates the retailer?s inventory problem under partial trade credit financing for two echelon supply chain where the supplier, as well as the retailer, offers partial trade credit to the subsequent downstream member. An algebraic approach has been applied for finding the retailer?s optimal ordering policy under minimizing the annual total relevant cost. Results have been validated with the help of examples followed by comprehensive sensitivity analysis.

Retailer's optimal ordering policy under two-part trade credit financing

ICSSSM11 ◽  
2011 ◽  
Author(s):  
Zhou Yong-Wu ◽  
Zhong Yuan-Guang ◽  
Wang Sheng-Dong
Keyword(s):  
Trade Credit ◽  
Ordering Policy ◽  
Credit Financing ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

The retailer’s optimal ordering policy with trade credit in different financial environments

2012 ◽  
Vol 218 (19) ◽  
pp. 9623-9634 ◽  
Author(s):  
Mei-Chuan Cheng ◽  
Chun-Tao Chang ◽  
Liang-Yuh Ouyang
Keyword(s):  
Trade Credit ◽  
Ordering Policy ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

Retailer's Optimal Ordering Policy under Conditions of Allowable Shortage and Two-Level Trade Credit Derived without Derivatives

2013 ◽  
Vol 694-697 ◽  
pp. 3428-3433
Author(s):  
Fei Hu
Keyword(s):  
Differential Calculus ◽  
Trade Credit ◽  
Algebraic Method ◽  
Optimal Order ◽  
Order Quantity ◽  
Numerical Examples ◽  
Ordering Policy ◽  
Optimal Order Quantity ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

An inventory model was developed to determine an ordering policy for the retailer under conditions of allowable shortage and two levels of delay permitted. We present a simple algebraic method to replace the use of differential calculus for determining the retailer's optimal ordering policy. A theorem is presented to obtain the optimal order quantity, and numerical examples are given to illustrate the results obtained in this paper.

scholarly journals Integrated Inventory Model for Deteriorating Items with Price-Dependent Demand under Quantity-Dependent Trade Credit

2013 ◽  
Vol 2013 ◽  
pp. 1-8 ◽  
Author(s):  
Karuppuchamy Annadurai
Keyword(s):  
Trade Credit ◽  
Optimal Solution ◽  
Inventory Model ◽  
Selling Price ◽  
Business Decision ◽  
Integrated Inventory Model ◽  
Ordering Policy ◽  
Integrated Inventory ◽  
Optimal Ordering Policy ◽  
Optimal Ordering

This paper explores an integrated inventory model when the deterioration rate follows exponential distribution under trade credit. Here, it is assumed that demand rate is a function of selling price and the permissible delay in payment depends on the order quantity. In the model shortages are completely backlogged. The maximization of the total profit per unit of time is taken as the objective function to study the retailer’s optimal ordering policy. This paper also presents a practical application example where the proposed inventory model is utilized to support business decision making. Particularly, the model developed in the paper could be useful in the area of supply chain management. Finally, sensitivity analysis of the optimal solution with respect to major parameters is carried out. Our result illustrates that this model can be quite useful in determining the optimal ordering policy when the trade credit period is being analyzed.

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