This paper develops a powerful retailer inventory model under trade credit and quantity discounts in which the retailer’s order quantity is calculated for each setup and shipped in equal lots over multiple deliveries. Furthermore, the trade credit condition is that the retailer must make partial payments in cash for a given number of sub-shipments, with the remaining balance paid in trade credit time that expires after the inventory is depleted. This integrated powerful retailer supply chain model has not yet been discussed in previous supply chain coordination systems literature. We propose an annual total cost function and properties and develop theorems to illustrate that a unique optimal solution minimizes the relevant cost per year. We also develop an efficient algorithm to determine the optimal set of the replenishment time and the number of shipments. Numerical examples are provided to demonstrate the proposed model and algorithm. A sensitivity analysis is explored to examine the effects of four important parameters (i.e., setup cost, unit holding cost, interest rate, and receiving cost) on the optimal strategy. Finally, managerial insights are drawn.
Accepté le :
Première publication :
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DOI : 10.1051/ro/2020115
Keywords: Supply chain management, trade credit, quantity discounts, lot-splitting shipments
@article{RO_2021__55_S1_S2811_0,
author = {Lin, Tien-Yu and Li, Ying-Chun and Li, Q.-S.},
title = {The impact for retailer{\textquoteright}s policy in supply chain system under trade credit and quantity discounts},
journal = {RAIRO. Operations Research},
pages = {S2811--S2829},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
doi = {10.1051/ro/2020115},
mrnumber = {4223140},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2020115/}
}
TY - JOUR AU - Lin, Tien-Yu AU - Li, Ying-Chun AU - Li, Q.-S. TI - The impact for retailer’s policy in supply chain system under trade credit and quantity discounts JO - RAIRO. Operations Research PY - 2021 SP - S2811 EP - S2829 VL - 55 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2020115/ DO - 10.1051/ro/2020115 LA - en ID - RO_2021__55_S1_S2811_0 ER -
%0 Journal Article %A Lin, Tien-Yu %A Li, Ying-Chun %A Li, Q.-S. %T The impact for retailer’s policy in supply chain system under trade credit and quantity discounts %J RAIRO. Operations Research %D 2021 %P S2811-S2829 %V 55 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2020115/ %R 10.1051/ro/2020115 %G en %F RO_2021__55_S1_S2811_0
Lin, Tien-Yu; Li, Ying-Chun; Li, Q.-S. The impact for retailer’s policy in supply chain system under trade credit and quantity discounts. RAIRO. Operations Research, Tome 55 (2021), pp. S2811-S2829. doi: 10.1051/ro/2020115
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