 Two-echelon trade credit financing in a supply chain with perishable items and two different payment methodsA. Thangam and R. Uthayakumar International Journal of Operational Research, 2011, vol. 11, issue 4, 365-382 Abstract: In business, trade credits can be considered as a type of price discounts. In this paper, supplier offers full trade credit to his retailer and the retailer in turn offers partial trade credit to market customers. At the end of trade credit period, retailer considers two different payment methods to pay off the loan. In one type of payment method, the retailer settles the account for all units sold, keeps the profits for other use and starts paying interest charges on the unpaid balance. In another payment method, the retailer pays the supplier the total amount in the interest bearing account and then starts paying off the amount owed to the supplier whenever the retailer has money obtained from sales. Under the above conditions, we establish EOQ inventory models with perishable items. Mathematical theorems are developed to determine the optimal ordering policies for the retailer. To investigate the effect of changes in inventory parameter values on the optimal policy, a sensitivity analysis is conducted. Keywords: partial trade credits; EOQ models; supply chain management; SCM; perishable items; price discounts; payment methods; economic order quantity; inventory modelling. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijores:v:11:y:2011:i:4:p:365-382 Access Statistics for this article More articles in International Journal of Operational Research from Inderscience Enterprises Ltd |
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