Online-Retail Supply Chain Optimization with Credit Period and Selling Price-Dependent Demand

Credit payment strategies have been implemented widely in the online retail industry. This work studies an online-retail supply chain involving credit period and selling price-dependent demands. The participants of the supply chain form a Stackelberg game where the supplier as a follower sells products to the customers through an online platform provider, who as a leader provides a credit period to customers and charges the supplier based on the quantity of goods sold. We study and compare the supply chains when the online platform provider adopts the cash payment and credit payment strategies, respectively, to investigate the effects of the credit period, the selling price and the default risk on supply chain system performance. We also investigate these supply chains under both the centralized and decentralized settings and provide an example to illustrate a simple allocation mechanism to coordinate the decentralized supply chain. Finally, an extension of the supply chain with credit payment is given.

Two – Warehouse Inventory System Model for Deteriorating Items Considering Partial Upstream Trade Credit Financing

In this study, we developed an inventory system model under two – level trade credit where the supplier considers the retailer as credit risk but the retailer considers the customers as credit worthy. Therefore, the retailer is given a trade credit period on proportion of the goods ordered whenever he/she pays for proportion of the goods immediately after delivery. In the same vein, the retailer passes the same grace to the customers but without attaching any condition as the customers are assumed credit worthy. This partial upstream trade credit is offered to reduce the risk of failure in payment on the business transaction especially that most retailers are involved in bulk orders. The relevant cost functions are determined and a numerical example is given. Sensitivity analysis was carried out to see the effect of changes in parameters on the optimal solution of the model.

Fuzzy-Based EOQ Model With Credit Financing and Backorders Under Human Learning

In this paper, an inventory model has been developed with trade credit financing and back orders under human learning. In this model, it is considered that the seller provides a credit period to his buyer to settle the account and the buyer accepts the credit period policy with certain terms and conditions. The impact of learning and credit financing on the size of the lot and the corresponding cost has been presented. For the development of the model, demand and lead times have been taken as the fuzzy triangular numbers are fuzzified, and then learning has been done in the fuzzy numbers. First of all, the consideration of constant fuzziness is relaxed, and then the concept of learning in fuzzy under credit financing is joined with the representation, assuming that the degree of fuzziness reduces over the planning horizon. Finally, the expected total fuzzy cost function is minimized with respect to order quantity and number of shipments under credit financing and learning effect. Lastly, sensitive analysis has been presented as a consequence of some numerical examples.

Designing a supply chain network under a dynamic discounting-based credit payment program

This study examines the effects of dynamic discounting based credit payment on a supply chain network design problem. Dynamic discounting based credit payment is a supply chain finance policy wherein the supplier provides a credit period to a distribution center (DC) with a discount applied if the DC pays the supplier before the end of the credit period. This study also considers the time value of money and applies discounted cash flows to formulate a model that determines the DC’s optimal replenishment cycle, selling price, and influence area while maximizing the present value of the total profit. The continuous approximation approach is applied to formulate a mathematical model of the problems, and an algorithm based on non-linear optimization is established to solve the problem. A numerical example and a sensitivity analysis are provided to present the proposed model and solution approach and to illustrate the effect of each cost on the decisions and profit.

Production/Inventory Policies for a Two-Echelon System with Credit Period Incentives

Trade credit is a crucial source of capital particularly for small businesses with limited financing opportunities. Inventory models considering trade credit financing have been widely studied. However, while there is extensive research on the single-vendor single-buyer inventory model allowing delays in payments, the systems where the vendor supplies to more than one buyer have received less attention. In this paper, we analyze a two-echelon inventory system where a single vendor supplies an item to two buyers who face a constant deterministic demand. The vendor produces the items at a finite rate and offers the buyers a delay payment period. That is, the buyers can delay the payment for the purchased items until the end of the credit period. Therefore, during such a period, the buyers sell the items and use the sales revenue to earn interest. At the end of the credit period, the buyers should pay the purchasing cost to the vendor for which external funding may be necessary. It is widely accepted that, in general, centralized policies reduce the total cost of the supply chain. Therefore, we first deal with an integrated model assuming that the vendor and the buyers make decisions jointly. However, in some cases, the buyers are not willing to collaborate, and the management of the supply chain has to be carried out in a decentralized manner. Hence, we also address the problem under a non-cooperative setting. Numerical examples are presented to illustrate both models. Additionally, we perform a computational experiment to compare both strategies, and a sensitivity analysis of the parameters is also carried out. From the results, we derived that, in general, it was more profitable to follow the integrated policy excepting when the replenishment costs for the buyers were high. Finally, in order to validate the computational results, a statistical analysis is performed.

Pricing Policy in an Integrated Two-echelon Supply Chain under Permissible Delay of Payment

This work examines the effect of pricing strategy in a supply chain consists of two members namely supplier and retailer. The supplier provides a credit period to the retailer. The retailer also provides a trade credit period to the customer within cycle length. A collaborative approach between two members is considered. The ultimate objective is to find maximum profit for the integrated system.

Wanprestasi pada Kredit Perbankan Akibat Pandemi Coronavirus Disease 2019

This research discusses the concept of default on bank credit due to the Coronavirus Disease 2019 (Covid-19) pandemic. In order to maintain the national economic growth which is decreasing due to the Covid-19 pandemic, POJK No. 11/2020 juncto POJK No. 48/2020 regulates the provision of stimulus policies for bank debtors who experience difficulties in fulfilling their obligations to banks. After the enactment of this policy, the debtor is declared to be in default if there is an arrear that exceeds 90 days because the debtor does not meet the requirements for the accuracy of principal and/or interest payments in Article 3 paragraph (1) POJK No. 11/2020 juncto POJK No. 48/2020, so that debtor credit cannot be restructured. Due to the unsuccessful restructuring, based on Article 5 paragraph (1) POJK No. 11/2020 juncto POJK No. 48/2020, the credit quality remains in the non-performing loan category. The legal measures that can be taken by banks are through the efforts to save credit by credit restructuring. This study taken an example of a restructuring scheme at BRI Bank, by using the method of lowering interest rates, changes in principal installment scheduling and extension of the credit period. If the loan restructuring is not successful, then the bank needs to handle it by credit settlement efforts.Keywords: Default; Bank Credits; Covid-19.Penelitian ini membahas mengenai wanprestasi pada kredit perbankan akibat pandemi Coronavirus Disease 2019 (Covid-19). Untuk menjaga pertumbuhan perekonomian nasional yang sedang menurun akibat pandemi Covid-19, diterbitkan POJK No. 11/2020 juncto POJK No. 48/2020 yang mengatur mengenai pemberian kebijakan stimulus bagi debitur bank yang mengalami kesulitan untuk memenuhi kewajibannya kepada bank. Pasca berlakunya kebijakan tersebut, debitur dinyatakan melakukan wanprestasi apabila, terjadi tunggakan yang melebihi 90 hari dikarenakan debitur tersebut tidak memenuhi persyaratan ketepatan pembayaran pokok dan/atau bunga dalam Pasal 3 ayat (1) POJK No. 11/2020 juncto POJK No. 48/2020, sehingga kredit debitur tidak dapat dilakukan restrukturisasi. Oleh karena tidak berhasil direstrukturisasi, berdasarkan Pasal 5 ayat (1) POJK No. 11/2020 juncto POJK No. 48/2020 maka kualitas kredit tetap dalam kategori kredit bermasalah. Upaya penanganan yang dapat dilakukan bank yaitu melalui upaya penyelamatan kredit dengan melakukan restrukturisasi kredit. Penelitian ini mengambil contoh skema restrukturisasi pada Bank BRI, yaitu dengan menggunakan metode penurunan suku bunga, perubahan penjadwalan angsuran pokok dan perpanjangan jangka waktu kredit. Jika restrukturisasi kredit tidak berhasil, maka dilakukan upaya penanganan melalui upaya penyelesaian kredit.Kata Kunci: Wanprestasi; Kredit Perbankan; Covid-19.