Presently in the commercial environment, because of the high level of market globalization and rapid increase in industrialization, supply chain synchronization is playing an increasingly significant role in the proper management of the whole system including several factors at the same time. In real business world, both manufacturer and retailer accept credit to make their business position strong, as credit not only strengthens their business relationships but also increases the scale of their profits. The long period of credit may increase the demand ratebut simultaneously it can also increase the credit risk. We investigate a two-layer supply chain model under dynamic demand with a manufacturer and a retailer maintaining decaying items with controllable deterioration rates under two levels of trade credit policies. For the time of trade credit granted to the retailer, the manufacturer bears opportunity costs. To promote sales and optimize sales volume, both supply chain participants give trade credit periods to downstream members and due to the credit period, both of them are facing default risk. Both members work together to invest in preservation technologies to abate the rate of degradation. The proposed models are developed for both the centralized and the decentralized scenarios. A closed form model having profit maximization problem is developed for both the centralized and the decentralized scenarios. The focus of this study is to obtain the optimal selling price, replenishment cycle time, preservation technology cost, upstream and downstream trade credit period to optimize supply chain profit. The paper’s novelty lies in introducing two level trade credit with default risk considering decaying items with controllable deterioration and price and credit sensitive customer’s demand in a dual channel supply chain inventory policy. It is found that joint supply chain model can be able to enhance the total profit of the whole supply chain. Lastly, sensitivity analysis highlights the influence of major model parameters using numerical examples.
Keywords: Inventory, supply chain, dynamic demand, deterioration, two-level Trade credit, preservation technology investment
@article{RO_2022__56_4_2443_0,
author = {Choudhury, Mukunda and Mahata, Gour Chandra},
title = {Dual channel supply chain inventory policies for controllable deteriorating items having dynamic demand under trade credit policy with default risk},
journal = {RAIRO. Operations Research},
pages = {2443--2473},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {4},
doi = {10.1051/ro/2022097},
mrnumber = {4458847},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2022097/}
}
TY - JOUR AU - Choudhury, Mukunda AU - Mahata, Gour Chandra TI - Dual channel supply chain inventory policies for controllable deteriorating items having dynamic demand under trade credit policy with default risk JO - RAIRO. Operations Research PY - 2022 SP - 2443 EP - 2473 VL - 56 IS - 4 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2022097/ DO - 10.1051/ro/2022097 LA - en ID - RO_2022__56_4_2443_0 ER -
%0 Journal Article %A Choudhury, Mukunda %A Mahata, Gour Chandra %T Dual channel supply chain inventory policies for controllable deteriorating items having dynamic demand under trade credit policy with default risk %J RAIRO. Operations Research %D 2022 %P 2443-2473 %V 56 %N 4 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2022097/ %R 10.1051/ro/2022097 %G en %F RO_2022__56_4_2443_0
Choudhury, Mukunda; Mahata, Gour Chandra. Dual channel supply chain inventory policies for controllable deteriorating items having dynamic demand under trade credit policy with default risk. RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2443-2473. doi: 10.1051/ro/2022097
[1] , and , Review of inventory systems with deterioration since 2001. Eur. J. Oper. Res. 221 2012 275–284. | MR
[2] and , A single-manufacturer multi-retailer integrated inventory model for items with imperfect quality, price sensitive demand and planned back orders. RAIRO-Oper. Res. 55 (2021) 3459–3491. | MR | Numdam | DOI
[3] and , Generalized Convexity and Optimization: Theory and Applications. Berlin, Heidelberg, Springer-Verlag (2009). | MR
[4] and , Supply chain coordination for the joint determination of order quantity and reorder point using credit option. Eur. J. Oper. Res. 204 (2010) 86–95. | DOI
[5] and , Retailer’s optimal ordering policy for deteriorating items with maximum lifetime under supplier’s trade credit financing. Appl. Math. Model. 38 (2014) 4049–4061. | MR | DOI
[6] and , The optimal retailer’s ordering policies for deteriorating items with limited storage capacity under trade credit financing. J. Oper. Res. Soc. 106 (2007) 1011–1015.
[7] , , , and , An inventory model for non-instantaneous deteriorating items with preservation technology and multiple credit periods-based trade credit financing via particle swarm optimization. Soft Comput. 25 (2021) 5365–5384. | DOI
[8] , and , Carbon emission sensitive deteriorating inventory model with trade credit under volumetric fuzzy system. Int. J. Intell. Syst. 36 (2021) 7563–7590. | DOI
[9] , The effect of preservation technology investment on a non-instantaneous deteriorating inventory model. Omega 41 (2013) 872–880. | DOI
[10] and , An optimal replenishment policy for deteriorating items with effective investment in preservation technology. Eur. J. Oper. Res. 218 (2012) 106–112. | MR | DOI
[11] and , Sustainable trade credit and replenishment decisions with credit-linked demand under carbon emission constraints. Eur. J. Oper. Res. 244 (2015) 187–200. | MR | DOI
[12] and , Supply chain model for a deteriorating product with time varying demand and production rate. J. Oper. Res. Soc. 63 (2012) 665–673. | DOI
[13] , and , A vendor-buyer supply chain model for time-dependent deteriorating item with preservation technology investment. Int. J. Math. Oper. Res. 10 (2017) 431–449. | MR | DOI
[14] , An integrated inventory model for a single supplier-single customer problem. Int. J. Prod. Res. 15 (1977) 107–111. | DOI
[15] , Economic Order Quantity under Conditions of Permissible Delay in Payments. J. Oper. Res. Soc. 36 (1985) 335–338. | DOI
[16] and , Integrated inventory models: the buyer-vendor coordination. Eur. J. Oper. Res. 41 (1989) 261–269. | DOI
[17] , , and , Optimizing inventory level and technology investment under a carbon tax, cap-and-trade and strict carbon limit regulations. Sustain. Prod. Consum. 25 (2021) 604–621. | DOI
[18] , The optimal integrated inventory policy with price-and-credit-linked demand under two-level trade credit. Comput. Ind. Eng. 60 (2011) 117–126. | DOI
[19] , and , A two-level delay in payments contract for supply chain coordination: The case of credit-dependent demand. Int. J. Prod. Econ. 191 (2017) 26–36. | DOI
[20] , and , Preservation technology investment for deteriorating inventory. Int. J. Prod. Econ. 124 (2010) 388–394. | DOI
[21] , Optimal retailer’s ordering policies in the EOQ model under trade credit financing. J. Oper. Res. Soc. 54 (2003) 1011–1015. | DOI
[22] , , and , Inventory and credit decisions for deteriorating items with displayed stock dependent demand in two-echelon supply chain using Stackelberg and Nash equilibrium solution. Ann. Oper. Res. 274 (2019) 309–329. | MR | DOI
[23] , and , Literature review of deteriorating inventory models by key topics from 2012 to 2015. Int. J. Prod. Econ. 182 (2016) 86–112. | DOI
[24] and , The effects of varying marketing policies and conditions on the economic ordering quantity. Int. J. Prod. Res. 24 (1986) 593–598. | DOI
[25] , and , A review on deteriorating inventory study. J. Serv. Sci. Manag. 03 (2010) 117–129.
[26] , , and , Single Stage Heuristics for Perishable Inventory Control in Two-Echelon Supply Chains. The College of Management, Georgia Institute of Technology, Atlanta, GA (2006).
[27] , An EPQ-based inventory model for exponentially deteriorating items under retailer partial trade credit policy in supply chain. Expert Syst. Appl. 39 (2012) 3537–3550. | DOI
[28] , A production-inventory model with imperfect production process and partial backlogging under learning considerations in fuzzy random environments. J. Intell. Manuf. 28 (2017) 883–897. | DOI
[29] and , Analysis of a fuzzy economic order quantity model for deteriorating items under retailer partial trade credit financing in a supply chain. Math. Comput. Model. 53 (2011) 1621–1636. | MR | DOI
[30] and , Economic production quantity model with trade credit financing and price-discount offer for non-decreasing time varying demand pattern. Int. J. Procure. Manag. 7 (2014) 563–581.
[31] , and , An ordering policy for deteriorating items with price-dependent iso-elastic demand under permissible delay in payments and price inflation. Math. Comput. Model. Dyn. Syst. 25 (2019) 575–601. | MR | DOI
[32] , and , An economic order quantity model under two-level partial trade credit for time varying deteriorating items. Int. J. Syst. Sci.: Oper. Logist. 7 (2020) 1–17.
[33] , , and , Three-echelon supply chain model in an imperfect production system with inspection error, learning effect, and return policy under fuzzy environment. Int. J. Syst. Sci.: Oper. Logist. (2021) DOI: | DOI
[34] and , Optimal inventory policies for deteriorating items with expiration date and dynamic demand under two-level trade credit. Opsearch 58 (2021) 994–1017. | MR | DOI
[35] and , Optimal replenishment, pricing and preservation technology investment policies for non-instantaneous deteriorating items under two-level trade credit policy. J. Ind. Manag. Optim. (2021) DOI: . | DOI | MR
[36] , and , The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment. Transp. Res. Part E: Logist. Transp. Rev. 131 (2019) 118–138. | DOI
[37] , , and , A resilient hybrid payment supply chain inventory model for post Covid-19 recovery. Comput. Ind. Eng. 157 (2021) 107249. | DOI
[38] , , and , A sustainable inventory system with the advanced payment policy and trade-credit strategy for a two-warehouse inventory system. Kybernetes 55 (2021) 1321–1348. | DOI
[39] , , , and , An inventory model under price and stock dependent demand for controllable deterioration rate with shortages and preservation technology investment. Ann. Oper. Res. 254 (2017) 165–190. | MR | DOI
[40] , and , Optimum sustainable inventory management with backorder and deterioration under controllable carbon emissions. J. Clean. Prod. 279 (2021) 123699. | DOI
[41] and , Optimal replenishment and credit policy in an inventory model for deteriorating items under two-levels of trade credit policy when demand depends on both time and credit period involving default risk. RAIRO-Oper. Res. 52 (2018) 1175–1200. | MR | Numdam | DOI
[42] , , , and , Effect of price-sensitive demand and default risk on optimal credit period and cycle time for a deteriorating inventory model. RAIRO-Oper. Res. 55 (2021) S2575–S2592. | MR | Numdam | DOI
[43] , , , and , A green inventory model with the effect of carbon taxation. Ann. Oper. Res. 309 (2022) 233–248. | MR | DOI
[44] , and , Deteriorating inventory with preservation technology under price-and stock-sensitive demand. J. Ind. Manag. Optim. 16 (2020) 1585–1612. | MR | DOI
[45] , and , An integrated vendor-buyer model with quadratic demand under inspection policy and preservation technology. Hacet. J. Math. Stat. 49 (2020) 1168–1189. | MR | DOI
[46] , Optimal lot sizing, process quality improvement and setup cost reduction. Oper. Res. 34 (1986) 137–144. | DOI
[47] , and , A two-warehouse probabilistic model with price discount on backorders under two levels of trade-credit policy. J. Ind. Manag. Optim. 16 (2020) 553–578. | MR | DOI
[48] , and , The ramification of dynamic investment on the promotion and preservation technology for inventory management through a modified flower pollination algorithm. J. Retail. Consum. Serv. 58 (2021) 102326. | DOI
[49] , A production-inventory model of imperfect quality products in a three-layer supply chain. Decis. Support Syst. 50 (2011) 539–547. | DOI
[50] , and , Inventory and preservation investment for deteriorating system with stock-dependent demand and partial backlogged shortages. Yugosl. J. Oper. Res. 31 (2021) 181–192. | MR | DOI
[51] , and , A sustainable production-inventory model with imperfect quality under preservation technology and quality improvement investment. J. Clean. Prod. 310 (2021) 127332. | DOI
[52] , and , A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment under Carbon Tax. Sustainability 11 (2019) 5027. | DOI
[53] , , and , Two echelon supply chain model for deteriorating items with effective investment in preservation technology. Int. J. Math. Oper. Res. 6 (2014) 84–105. | MR | DOI
[54] and , Optimal manufacturer’s replenishment policies in the EPQ model under two levels of trade credit policy. Eur. J. Oper. Res. 195 (2009) 358–363. | MR | DOI
[55] and , Two-echelon trade credit financing for perishable items in a supply chain when demand depends on both selling price and credit period. Comput. Ind. Eng. 57 (2009) 773–786. | DOI
[56] , and , Sustainable inventory management with deteriorating and imperfect quality items considering carbon emission. J. Clean. Prod. 192 (2018) 281–292. | DOI
[57] , and , Optimal inventory policies for deteriorating items with trapezoidal-type demand patterns and maximum lifetimes under upstream and downstream trade credits. Ann. Oper. Res. 264 (2018) 1–18. | MR
[58] , , and , Reduction of waste and carbon emission through the selection of items with cross-price elasticity of demand to form a sustainable supply chain with preservation technology. J. Clean. Prod. 297 (2021) 126298. | DOI
[59] , , and , Coordinating a supply chain for deteriorating items with a revenue sharing and cooperative investment contract. Omega 56 (2015) 37–49. | DOI
Cité par Sources :
