Dominant retailer's optimal policy in a supply chain under Advance Payment scheme and trade credit

A. Thangam

International Journal of Mathematics in Operational Research, 2011, vol. 3, issue 6, 658-679

Abstract: In a supply chain, a large and powerful retailer has the power of influencing another member's decisions. In real life situations, the retailer provides price discount under Advance Payment (AP) scheme in order to attract customers in today's business such as bricks, tiles, books etc. Due to the advancement of the internet and online money transactions, the AP scheme is common and useful to estimate the demand well in advance and to increase the market sales. In this paper, we consider a two-echelon supply chain with single supplier and multiple retailers. Among all the retailers, we intend to find optimal policy at the dominant retailer who offers AP scheme and trade credit in order to attract more customers. An Economic Order Quantity (EOQ) model with perfect items is developed to investigate the dominant retailer's inventory system as a cost minimisation problem. A lot of managerial phenomena are obtained through numerical examples.

Keywords: advance payment; two-level trade credit; supply chain management; SCM; EOQ; economic order quantity; dominant retailers; inventory management. (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=43015 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmore:v:3:y:2011:i:6:p:658-679

Access Statistics for this article

More articles in International Journal of Mathematics in Operational Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().