scholarly journals Supply chain coordination with trade credit and price discount with/without environmental considerations

2021 ◽  
Author(s):  
Salem Mousa Salem Aljazzar
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Performance Measure ◽  
Sensitivity Analyses ◽  
Total System ◽  
Permissible Delay In Payments ◽  
Price Discounts ◽  
Trade Credits ◽  
Delay In Payments

For a supply chain coordination to be effective and profitable, it requires a working mechanism among its members to entice some players to join a partnership. Two of the well-known trade credits that are widely used by businesses are the permissible delay in payments and price discounts. This thesis presents models for coordinating supply chains with both trade credits. The first model investigates the effect of utilizing delay in payments in a two-level (manufacturer-retailer) supply chain. It modifies and analyzes three known models of different production and shipping policies to account for delays in payments; it then compares them and highlights the production policy that performed the best with the total system cost being the performance measure. The second model analyzes the coordination of a three-level (supplier-manufacturer- retailer) supply chain with the delay in payments. It analyzes nine different scenarios of permissible delay among the three players. A simulation study was performed and a thorough analysis of the results was used to identify the limitations of all scenarios and to draw some managerial insights and findings. The third model investigates the effect of coupling permissible delay in payments and price discounts for coordinating a three-level. The analysis considers nine different cases of delay-in-payments along with eight cases of price discounts among the three players in the supply chain, totaling seventy-two cases. The numerical examples and the sensitivity analyses show that the coupling of delay-in- payments and price discounts maximizes the supply chain profit more than when using a single mechanism at a time. The fourth model investigates a two-level supply chain by studying the effects of various scenarios for delay-in-payments when including some environmental costs such as fuel and emissions from manufacturing and transportation. The objective of the model is to optimize the environmental and the economic performance of the supply chain. The results show that delay-in-payments improves the economic and the environmental performance of a supply chain.

scholarly journals Supply chain coordination with trade credit and price discount with/without environmental considerations

2021 ◽  
Author(s):  
Salem Mousa Salem Aljazzar
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Performance Measure ◽  
Sensitivity Analyses ◽  
Total System ◽  
Permissible Delay In Payments ◽  
Price Discounts ◽  
Trade Credits ◽  
Delay In Payments

For a supply chain coordination to be effective and profitable, it requires a working mechanism among its members to entice some players to join a partnership. Two of the well-known trade credits that are widely used by businesses are the permissible delay in payments and price discounts. This thesis presents models for coordinating supply chains with both trade credits. The first model investigates the effect of utilizing delay in payments in a two-level (manufacturer-retailer) supply chain. It modifies and analyzes three known models of different production and shipping policies to account for delays in payments; it then compares them and highlights the production policy that performed the best with the total system cost being the performance measure. The second model analyzes the coordination of a three-level (supplier-manufacturer- retailer) supply chain with the delay in payments. It analyzes nine different scenarios of permissible delay among the three players. A simulation study was performed and a thorough analysis of the results was used to identify the limitations of all scenarios and to draw some managerial insights and findings. The third model investigates the effect of coupling permissible delay in payments and price discounts for coordinating a three-level. The analysis considers nine different cases of delay-in-payments along with eight cases of price discounts among the three players in the supply chain, totaling seventy-two cases. The numerical examples and the sensitivity analyses show that the coupling of delay-in- payments and price discounts maximizes the supply chain profit more than when using a single mechanism at a time. The fourth model investigates a two-level supply chain by studying the effects of various scenarios for delay-in-payments when including some environmental costs such as fuel and emissions from manufacturing and transportation. The objective of the model is to optimize the environmental and the economic performance of the supply chain. The results show that delay-in-payments improves the economic and the environmental performance of a supply chain.

scholarly journals Supply Chain Coordination for Fixed Lifetime Products with Permissible Delay in Payments

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Yongrui Duan ◽  
Guiping Li ◽  
Jiazhen Huo
Keyword(s):  
Supply Chain ◽  
Cost Saving ◽  
Supply Chain Coordination ◽  
Total System ◽  
Coordination Problem ◽  
Permissible Delay In Payments ◽  
Credit Period ◽  
Delay In Payments ◽  
Fixed Lifetime ◽  
The Cost

This paper considers a two-level supply chain coordination problem for fixed lifetime products with permissible delay in payments. Two cases are discussed; that is, the retailer is required to settle the balance before the end of the ordering cycle (Case I) and after the ordering cycle (Case II). The coordination models are proposed and analyzed, respectively. The analytical methods as to how to determine the optimal policy are presented. In addition, it is indicated that the supplier's cost as well as that of the total system will be reduced no matter how much the parameters change, and the retailer will benefit from coordination, if the supplier is willing to share the cost saving with him/her in Case I. In Case II, the retailer's average cost will be reduced and the supplier will benefit from coordination only under certain conditions. Besides, the results show that, for fixed lifetime products, providing longer credit period than the retailer's order period is not commonly applicable.

Metal Industry Supply Chain Buyback Contract Coordination and Income Distribution Based on Trade Credit

2014 ◽  
Vol 889-890 ◽  
pp. 1503-1506
Author(s):  
Li Ping Yu ◽  
Cong Wang ◽  
Xiang Yuang Li
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Metal Industry ◽  
Operational Performance ◽  
Optimal Contract ◽  
Rational Allocation ◽  
Trade Credits ◽  
Buyback Contract

This paper considers a metal industry supply chain consisting of one supplier and one retailer. When the supplier offers the trade credit to the retailer, their target profit and the supply chains profit will change. We develop the metal industry supply chains trade credit-based buyback contract model and analyze the buyback based on trade credits mechanism for improving the entire metal industry supply chain operational performance and for distributing the profit. We also derive the optimal contract parameters for the metal industry supply chain coordination and the conditions for profits rational allocation. Finally, a numerical example illustrates the conclusions.

scholarly journals Three-Echelon Inventory Model with Permissible Delay in Payments under Controllable Lead Time and Backorder Consideration

2014 ◽  
Vol 2014 ◽  
pp. 1-16 ◽  
Author(s):  
M. F. Yang ◽  
Wei-Chung Tseng
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Critical Issue ◽  
Solution Procedure ◽  
Inventory Model ◽  
Permissible Delay In Payments ◽  
Inventory Policy ◽  
Controllable Lead Time ◽  
Key Factor ◽  
Delay In Payments

This paper proposes a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration to find out the suitable inventory policy to enhance profit of the supply chain. In today’s highly competitive market, the supply chain management has become a critical issue in both practice and academic and supply chain members have to cooperate with each other to bring more benefits. In addition, the inventory policy is a key factor to influence the performance of the supply chain. Therefore, in this paper, we develop a three-echelon inventory model with permissible delay in payments under controllable lead time and backorder consideration. Furthermore, the purpose of this paper is to maximize the joint expect total profit on inventory model and attempt to discuss the inventory policy under different conditions. Finally, with a numerical example provided here to illustrate the solution procedure, we may discover that decision-makers can control lead time and payment time to enhance the performance of the supply chain.

Stackelberg solution in a vendor–buyer supply chain model with permissible delay in payments

2013 ◽  
Vol 144 (1) ◽  
pp. 397-404 ◽  
Author(s):  
Maw-Sheng Chern ◽  
Qinhua Pan ◽  
Jinn-Tsair Teng ◽  
Ya-Lan Chan ◽  
Sheng-Chih Chen
Keyword(s):  
Supply Chain ◽  
Chain Model ◽  
Permissible Delay In Payments ◽  
Stackelberg Solution ◽  
Supply Chain Model ◽  
Delay In Payments

Optimal Integrated Inventory Policy for Deteriorating Units Under Selling-Price-Dependent Demand When Holding Cost Is Capacity-Utilization Dependent

2018 ◽  
pp. 74-89
Author(s):  
Ishaben Talati ◽  
Poonam Prakash Mishra
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Profit Maximization ◽  
Capacity Utilization ◽  
Optimal Number ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Sustainable Supply Chain ◽  
Modern Approach ◽  
Holding Cost

Conventional EOQ models always discussed profit maximization for one player at a time. But modern approach of supply chain suggests that growing and sustainable supply chain is possible only when benefits of all members of chain are protected. This chapter proposes an integrated model of supply chain where units in inventory are subjected to time dependent deterioration. Since demand is inversely proportional to selling price of the item, it is assumed selling price dependent. To make it more practical and feasible permissible delay on payments is offered only on purchase of a certain amount of quantity. This chapter helps to offer an algorithm to attain optimal number of orders, quantity, selling price and trade credit to maximize the joint profit of supply chain. Isolated profit of supply chain is compared with overall system profit. Results are validated by numerical examples and further sensitivity analyses of important parameters are discussed. Conclusion obtained from the chapter is useful to supply chains involved with FMCGs, Drugs, Fashion goods and home decor textile.

Optimal Policies for Items With Quadratic Demand and Time-Dependent Deterioration Under Two Echelon Trade Credits

2018 ◽  
pp. 32-43 ◽  
Author(s):  
Azharuddin Sarfuddin Shaikh ◽  
Poonam Prakash Mishra
Keyword(s):  
Trade Credit ◽  
Time Dependent ◽  
Decision Variable ◽  
Lot Size ◽  
Variable Sensitivity ◽  
Trade Credits ◽  
Total Profit ◽  
Holding Cost ◽  
Delay In Payments ◽  
Home Furnishing

In today's competitive and global business scenario there is always a race to boost demand of your product over others. This can be achieved by different means and allowing permissible delay in payments is one of them. Researchers have proposed number of inventory models with trade credit that actually help to understand effect of trade credit on total profit and overall demand. This paper proposes a two – echelon trade credit where retailer receives credit period from the manufacturer and offer it to end customers appropriately to raise demand. Proposed inventory model assumes quadratic demand and subjected to time dependent deterioration. Ordering cost is considered lot – size dependent whereas holding cost has been taken time dependent. In this model profit is maximized considering cycle time as a decision variable. Sensitivity analysis of crucial inventory parameters and numeric examples are discussed in detail. Outcome of this model can be applied to a huge range of products like readymade garments, fashion accessories, electronics, furniture and home furnishing products.

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