Joint pricing and inventory management for growing items in a supply chain under trade credit

2021 ◽  
Author(s):  
Chandan Mahato ◽  
Sujit Kumar De ◽  
Gour Chandra Mahata
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Trade Credit ◽  
Joint Pricing ◽  
Growing Items

scholarly journals Retailer’s joint pricing model through an effective preservation strategy under a trade-credit policy

2021 ◽  
Author(s):  
Abu Hashan Md Mashud ◽  
Biswajit Sarkar
Keyword(s):  
Inventory Management ◽  
Trade Credit ◽  
Optimization Technique ◽  
Optimal Strategies ◽  
Preservation Technology ◽  
Sustainable Marketing ◽  
Total Profit ◽  
Joint Pricing ◽  
Theoretical Results ◽  
Actual Life

Sustainable inventory management is a common issue for any industry. This proposed study explains a representation of mathematical modelling for maintaining sustainability through the preservation technology for deteriorating products and trade-credit strategy for sustainable marketing. Based on the actual life circumstances, it is found that the demand for deteriorated products is influenced by the increasing frequency of advertising and preservation technology. The foremost aim of this study is to maintain sustainability with optimal pricing and optimal strategies to invest in preservation technology and optimal cycle length to take full advantage of the total profit. For solving the model, a classical optimization technique is utilized, and some theoretical results are shown with a graph of the profit function. Couples of experiments compare the proposed results and the existing literature and give some outcomes for different deterioration types. To illustrate and justify the model, a sensitivity analysis conceded for demonstrating the proposed model's flexibility by changing one parameter while keeping others fixed. The result shows that the trade-credit strategy under the preservation technology makes the management's most substantial marketing benefit.

scholarly journals Joint Pricing and Inventory Management of Interbasin Water Transfer Supply Chain

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-16
Author(s):  
Xue Chen ◽  
Zhisong Chen
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Water Transfer ◽  
Operational Performance ◽  
Sensitivity Analyses ◽  
Partial Backlogging ◽  
Water Delivery ◽  
Coordination Strategy ◽  
Interbasin Water Transfer ◽  
Joint Pricing

Four game-theoretical decision models without/with backlogging for the interbasin water transfer (IBWT) supply chain considering water delivery loss under joint pricing and inventory management (JPIM) are first developed, analyzed, and compared; then, the corresponding numerical and sensitivity analyses are conducted and compared; finally, the managerial insights and practical implementations are summarized in this paper. The research results indicate that (1) a revenue and cost sharing contract could effectively coordinate the IBWT supply chain and improve the operational performance of the IBWT supply chain under JPIM; (2) the partial backlogging strategy of water demand could effectively improve the operational performance of the IBWT supply chain under JPIM; (3) coordination strategy with partial backlogging is the best strategy for improving the operational performance of the IBWT supply chain under JPIM; (4) reducing water delivery loss rate and operational costs and increasing backlogging ratio are beneficial to improving the operational performance of the IBWT supply chain under JPIM.

scholarly journals Effect of Carbon Emission and Human Errors on a Two-Echelon Supply Chain under Permissible Delay in Payments

2020 ◽  
Vol 5 (2) ◽  
pp. 225-236
Author(s):  
Manavi Gilotra ◽  
Sarla Pareek ◽  
Mandeep Mittal ◽  
Vinti Dhaka
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Trade Credit ◽  
Transportation Cost ◽  
Solution Procedure ◽  
Production Model ◽  
Type I ◽  
Human Errors ◽  
Economic Production ◽  
Delay In Payments

Environmental worries in production and inventory models have received large attention in inventory management literature. In this paper, an economic production model is proposed with two-echelon supply chain when trade credit is offered by the supplier. This paper proposes human errors of Type I and Type II due to fatigue and inexperience of the inspector during screening. It considers the use of energy for production along with greenhouse gases (GHG) emission from production and transportation operations. The developed model optimizes the environmental and economic performances of the supply chain. Our aim is to explore the effects of human errors during inspection on the emission cost, transportation cost and delay in payment on the replenishment of order sizes and the expected total profit of the retailer. A mathematical model is developed and numerical examples are provided to illustrate the solution procedure.

Three-echelon supply chain inventory model for growing items

2019 ◽  
Vol 15 (2) ◽  
pp. 567-587 ◽  
Author(s):  
Makoena Sebatjane ◽  
Olufemi Adetunji
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Inventory Management ◽  
Cycle Time ◽  
Food Production ◽  
Cost Savings ◽  
Inventory Model ◽  
Customer Demand ◽  
Content Type ◽  
Growing Items

Purpose The purpose of this paper is to formulate a coordinated inventory control model for growing items in a supply chain with farming, processing and retail operations. The farmer grows newborn items and then delivers them to a processor once the items mature. At the processing plant, the items are slaughtered, cut and packaged at a specified rate. The processor then delivers a certain number of equally sized shipments of processed items to a retailer who satisfies customer demand. Design/methodology/approach A cost minimisation inventory model describing the problem at hand is formulated with the number of shipments and the cycle time being the decision variables. A solution algorithm for solving the problem is presented and applied to a numerical example. Findings Opting for an integrated policy is favourable to all supply chain members. When the proposed model is compared to equivalent independent and equal-cycle time replenishment policies, the total cost savings amount to 3 and 14 per cent, respectively. Social implications The model can serve as a guideline for procurement managers dealing with growing items to better their inventory management practices. Considerable cost savings in food production chains can be achieved through improved inventory control, and these savings can be used to cushion consumers against rising food prices. Originality/value Most previously published models on inventory management for growing items were formulated under the assumption that the items are grown and then sold to consumers instantaneously. In real food production systems, the items need to be transformed and packaged into a consumable form before customer demand is met. The model presented in this paper accounts for this and is therefore more realistic.

Retailer’s Operational Decision Based on EOQ Model with Upstream Flexible Two-Part Trade Credit and Downstream Partial Trade Credit

2021 ◽  
pp. 2150006
Author(s):  
Yi Zhang ◽  
Jinwu Gao
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Trade Credit ◽  
Optimization Method ◽  
Credit Period ◽  
Eoq Model ◽  
Partial Trade Credit ◽  
Purchase Cost ◽  
Cash Discount ◽  
Optimal Ordering

Flexible two-part trade credit is widely used in supply chain, however, there is scant research about inventory management engaged in flexible two-part trade credit strategy. This paper bridges this gap and studies a new two-level trade credit based on an EOQ model in which the supplier provides flexible two-part trade credit to the retailer and the retailer provides partial trade credit to its customer. We adopt a convex optimization method to obtain retailer’s optimal operational decision (i.e., the optimal ordering cycle, the optimal fraction of purchase cost that paid in advance, and the optimal credit period for its downstream customer). Moreover, we design a numerical algorithm to solve this model computationally. We find that: (1) the retailer is not sensitive to small cash discount provided by the supplier; (2) the length of credit period in flexible two-part trade credit strategy will affect the customer and retailer: the shorter one influences the retailer’s behavior, but not the customer’s; the longer one influences the customer’s behavior, but not the retailer’s; (3) the retailer can control its risk through partial trade credit.

Inventory optimization considering the vehicle capacity and specifics of cash flows at rental storage sites

2020 ◽  
pp. 77-90
Author(s):  
V.D. Gerami ◽  
I.G. Shidlovskii
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Sufficient Conditions ◽  
Cash Flows ◽  
Management Systems ◽  
Cargo Capacity ◽  
Special Modification ◽  
The Cost ◽  
Necessary And Sufficient ◽  
Vehicle Capacity

The article presents a special modification of the EOQ formula and its application to the accounting of the cargo capacity factor for the relevant procedures for optimizing deliveries when renting storage facilities. The specified development will allow managers to take into account the following process specifics in the format of a simulated supply chain when managing inventory. First of all, it will allow considering the most important factor of cargo capacity when optimizing stocks. Moreover, this formula will make it possible to find the optimal strategy for the supply of goods if, also, it is necessary to take into account the combined effect of several factors necessary for practice, which will undoubtedly affect decision-making procedures. Here we are talking about the need for additional consideration of the following essential attributes of the simulated cash flow of the supply chain: 1) time value of money; 2) deferral of payment of the cost of the order; 3) pre-agreed allowable delays in the receipt of revenue from goods sold. Developed analysis and optimization procedures have been implemented to models of this type that are interesting and important for a business. This — inventory management systems, the format of which is related to the special concept of efficient supply. We are talking about models where the presence of the specified delays for the outgoing cash flows allows you to pay for the order and the corresponding costs of the supply chain from the corresponding revenue on the re-order interval. Accordingly, the necessary and sufficient conditions are established based on which managers will be able to identify models of the specified type. The purpose of the article is to draw the attention of managers to real opportunities to improve the efficiency of inventory management systems by taking into account these factors for a simulated supply chain.

A systematic literature review of healthcare supply chain and implications of future research

2019 ◽  
Vol 13 (4) ◽  
pp. 405-435 ◽  
Author(s):  
Anuj Dixit ◽  
Srikanta Routroy ◽  
Sunil Kumar Dubey
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Inventory Management ◽  
Cold Chain ◽  
Future Research ◽  
Research Papers ◽  
Content Type ◽  
Drug Manufacturing ◽  
Customer Training

Purpose This paper aims to review the healthcare supply chain (HSC) literature along various areas and to find out the gap in it. Design/methodology/approach In total, 143 research papers were reviewed during 1996-2017. A critical review was carried out in various dimensions such as research methodologies/data collection method (empirical, case study and literature review) and inquiry mode of research methodology (qualitative, quantitative and mixed), country-specific, targeted area, research aim and year of publication. Findings Supply chain (SC) operations, performance measurement, inventory management, lean and agile operation, and use of information technology were well studied and analyzed, however, employee and customer training, tracking and visibility of medicines, cold chain management, human resource practices, risk management and waste management are felt to be important areas but not much attention were made in this direction. Research limitations/implications Mainly drug and vaccine SC were considered in current study of HSC while SC along healthcare equipment and machine, hospitality and drug manufacturing related papers were excluded in this study. Practical implications This literature review has recognized and analyzed various issues relevant to HSC and shows the direction for future research to develop an efficient and effective HSC. Originality/value The insight of various aspects of HSC was explored in general for better and deeper understanding of it for designing of an efficient and competent HSC. The outcomes of the study may form a basis to decide direction of future research.

scholarly journals Decision-making for Green Supply Chain Considering Fairness Concern Based on Trade Credit

IEEE Access ◽  
2021 ◽  
pp. 1-1
Author(s):  
Haoxiong Yang ◽  
Enlu Shao ◽  
Yuanyuan Gong ◽  
Xiaolin Guan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Trade Credit ◽  
Green Supply Chain ◽  
Fairness Concern
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