A delayed payment method in co-ordinating a single-vendor multi-buyer supply chain

Chi Kin Chan, Y.C.E. Lee and S.K. Goyal

International Journal of Production Economics, 2010, vol. 127, issue 1, 95-102

Abstract: In this paper, we consider a co-ordinated single-vendor multi-buyer supply chain model by synchronizing ordering and production cycles with delayed payments that are based on the buyers' order intervals. It can be shown that the synchronized cycles policy works better, in terms of total system costs, than independent optimization. While the vendor is benefited from the co-ordination by synchronized cycles, this research proposes a co-ordination mechanism that incorporates a delayed payment method which can guarantee that a buyer's total relevant cost of co-ordination will not be increased when compared with independent optimization. Most importantly, the vendor does not require any cost information from the buyers when applying this co-ordination mechanism.

Keywords: Synchronization; Cost; sharing; Multiple; buyers; Delayed; payment (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00179-9
Full text for ScienceDirect subscribers only

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:eee:proeco:v:127:y:2010:i:1:p:95-102

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().