TAILIEUCHUNG - Two echelon partial trade credit financing in a supply chain derived algebraically

Trade credit financing has become a powerful tool to improve sales and 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. | Yugoslav Journal of Operations Research 22 (2012), Number 2, 163-182 DOI: TWO ECHELON PARTIAL TRADE CREDIT FINANCING IN A SUPPLY CHAIN DERIVED ALGEBRAICALLY Chandra K. JAGGI and Mona VERMA Department of Operational Research, Faculty of Mathematical Sciences, University of Delhi ckjaggi@, ckjaggi@ Received: January 2010 / Accepted: August 2012 Abstract: 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 nonpayment 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. Keywords: EOQ, inventory, supply chain, partial trade credit, algebraic method. MSC: 90B05. 1. INTRODUCTION Mostly in business transactions, supplier allows a specified credit period to the retailer for the payment without any penalty to stimulate his demand. During this period the retailer can sell the product and earn interest on the revenue generated. A higher interest is charged if the payment is not settled at the end of the credit period offered. This is termed as one echelon trade

• Ngân hàng - Tín dụng
• Supply chain
• Partial trade credit
• Algebraic method
• Trade credit financing
• Downstream member
• Manufacturing planning
• Control for supply chain management
• Supply chain management
• Supply chain logistics
• Management of supply chain logistics
• Supply chain logistics framework
• Warehouse replenishment systems
• Empirical study on sustainable supply chain strategies
• Sustainable supply chain strategies
• The mediating role of supply chain collaboration
• Supply chain collaboration
• Jordanian Pharmaceutical companies incorporate
• Supply chain processes
• Goods producing processes
• Effective operation
• Supply chain strategy
• Advances in supply chain management
• Supply chain analysis
• Advanced planning
• Lecture Supply chain management
• Chuỗi cung ứng
• Quản lý chuỗi cung ứng
• Supply chain relationship management
• Global supply chain management
• Master thesis
• Business Administration
• Master thesis Business Administration
• Supply chain social sustainability
• Supply chain integration
• Supply chain performance
• Essentials of supply chain management
• Supply chain operations
• Supply chain coordination
• Business strategy
• Measuring performance
• Supply chain metrics
• Supply chain opportunities
• Developing supply chain systems
• Logistics and supply chain management
• Synchronous supply chain
• Managing the global pipeline
• Managing risk in the supply chain
• Lean supply chains
• Lean production
• Lean supply chain design