Supply Chain Model with Stochastic Lead Time, Trade-Credit Financing, and Transportation Discounts
Sung Jun Kim,Biswajit Sarkar +1 more
TLDR
In this paper, the authors extended a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced.Abstract:
This model extends a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade-credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced, where the supplier offers trade-credit-period to the buyer For buyer, the backorder rate is considered as variable There are two investments to reduce setup cost and to improve quality of products The model assumes lead time-dependent backorder rate, where the lead time is stochastic in nature By using the trade-credit policy, the model gives how the credit-period would be determined to achieve the win-win outcome An iterative algorithm is designed to obtain the global optimum results Numerical example and sensitivity analysis are given to illustrate the modelread more
Citations
More filters
Journal ArticleDOI
Joint effects of variable carbon emission cost and multi-delay-in-payments under single-setup-multiple-delivery policy in a global sustainable supply chain
TL;DR: In this paper, the authors developed a three-echelon sustainable supply chain model in the context of multi-level trade credit and single-setup-multiple-delivery policy for mutual coordination in financial support and reducing carbon emissions.
Journal ArticleDOI
Multi-item sustainable green production system under trade-credit and partial backordering
TL;DR: A green production quantity model with random imperfect quality items, trade-credit policy, service level constraints, and failure in reworking is developed to find the optimal green production and backordered quantity of each item such that the projected total cost is minimized.
Journal ArticleDOI
Sustainable ordering policies for non-instantaneous deteriorating items under carbon emission and multi-trade-credit-policies
TL;DR: In this article, a fuzzy green inventory model with non-instantaneous deteriorating products is presented to evaluate sustainable optimal ordering strategies for retailers, which maximize the entire annual profit and minimize the carbon emission.
Journal ArticleDOI
Effects of variable production rate on quality of products in a single-vendor multi-buyer supply chain management
TL;DR: Numerical study proves that the variable production rate effects a lot on the total cost of supply chain model, which affects the product quality as well as entire supply chain cost under a single-setup multiple-delivery policy.
Journal ArticleDOI
Flexible work-in-process production system in supply chain management under quality improvement
Mitali Sarkar,Byung Do Chung +1 more
TL;DR: An improved algorithm is designed to obtain the global minimum cost of SCM under the framework of a flexible production system and a numerical study proves that this model obtains the minimum cost with the optimal decision variables.
References
More filters
Journal ArticleDOI
Economic Order Quantity under Conditions of Permissible Delay in Payments
TL;DR: In this article, a mathematical model for obtaining the economic order quantity for an item for which the supplier permits a fixed delay in settling the amount owed to him is presented, and an example has been solved to illustrate the method.
Journal ArticleDOI
Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction
TL;DR: It is demonstrated that lower setup costs can benefit production systems by improving quality control by introducing a simple model that captures a significant relationship between quality and lot size.
Journal ArticleDOI
Ordering Policies of Deteriorating Items under Permissible Delay in Payments
S. P. Aggarwal,Chandra K. Jaggi +1 more
TL;DR: In this paper, an attempt has been made to obtain the optimum order quantity of deteriorating items under a permissible delay in payments, where it is found that the supplier allows a certain fixed period to settle the account, but beyond this period interest is charged under the terms and conditions agreed upon and moreover, interest can be earned on the revenue received during the credit period.
Journal ArticleDOI
An ordering policy for deteriorating items with allowable shortage and permissible delay in payment
TL;DR: In this article, a model to determine an optimal ordering policy for deteriorating items under a permissible delay of payment and allowable shortage was developed, and different facets of the permissible delays in payment were discussed, and this generalized model exhibits a set of solutions that reduces to an existing model.
Journal ArticleDOI
On the economic order quantity under conditions of permissible delay in payments
TL;DR: In this note, Goyal's model is amended by considering the difference between unit price and unit cost and an easy analytical closed-form solution is established, which reveals the following two managerial phenomena.
Related Papers (5)
Multi-stage cleaner production process with quality improvement and lead time dependent ordering cost
Min Soo Kim,Biswajit Sarkar +1 more