The joint replenishment problem with trade credits

Jen-Yen Lin () and Ming-Jong Yao ()
Additional contact information
Jen-Yen Lin: National Chiayi University
Ming-Jong Yao: National Chiao Tung University

Journal of Global Optimization, 2020, vol. 76, issue 2, No 7, 347-382

Abstract: Abstract It is a widespread financial practice in procurement management for a supplier aiming to attract customers to offer trade credits when customers make inquiries about the sold products. In this paper, we examine the joint replenishment problem considering trade credits (JRP-TC) under the power-of-two (PoT) policy. We formulate a mathematical model and conduct an analysis that reveals insights into the properties of the optimal objective function. From there, we propose an effective search algorithm that obtains the global optimal solution for the JRP-TC under the PoT policy. Our complexity analysis shows that the JRP-TC and the conventional joint replenishment problem under the PoT policy are pseudo-polynomial time solvable.

Keywords: Joint replenishment; Trade credits; Power-of-two; Pseudo-polynomial time (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10898-019-00851-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:jglopt:v:76:y:2020:i:2:d:10.1007_s10898-019-00851-5

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/10898

DOI: 10.1007/s10898-019-00851-5

Access Statistics for this article

Journal of Global Optimization is currently edited by Sergiy Butenko

More articles in Journal of Global Optimization from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().