Online-Retail Supply Chain Optimization with Credit Period and Selling Price-Dependent Demand

Chunming Xu (), Changlong Wang (), Jie Ren (), Linyao Kang () and Donglei Du
Additional contact information
Chunming Xu: Institute of Operations Research and Systems Engineering, College of Science, Tianjin University of Technology, Tianjin 300384, P. R. China
Changlong Wang: School of Computer Science and Engineering, Tianjin University of Technology, Tianjin 300384, P. R. China
Jie Ren: School of Computer Science and Engineering, Tianjin University of Technology, Tianjin 300384, P. R. China
Linyao Kang: School of Computer Science and Engineering, Tianjin University of Technology, Tianjin 300384, P. R. China
Donglei Du: Faculty of Management, University of New Brunswick, Fredericton, NB, Canada E3B 9Y2, Canada

Asia-Pacific Journal of Operational Research (APJOR), 2023, vol. 40, issue 01, 1-24

Abstract: Credit payment strategies have been implemented widely in the online retail industry. This work studies an online-retail supply chain involving credit period and selling price-dependent demands. The participants of the supply chain form a Stackelberg game where the supplier as a follower sells products to the customers through an online platform provider, who as a leader provides a credit period to customers and charges the supplier based on the quantity of goods sold. We study and compare the supply chains when the online platform provider adopts the cash payment and credit payment strategies, respectively, to investigate the effects of the credit period, the selling price and the default risk on supply chain system performance. We also investigate these supply chains under both the centralized and decentralized settings and provide an example to illustrate a simple allocation mechanism to coordinate the decentralized supply chain. Finally, an extension of the supply chain with credit payment is given.

Keywords: Online retail; supply chain; credit period; default risk; pricing (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217595922400048
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:wsi:apjorx:v:40:y:2023:i:01:n:s0217595922400048

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217595922400048

Access Statistics for this article

Asia-Pacific Journal of Operational Research (APJOR) is currently edited by Gongyun Zhao

More articles in Asia-Pacific Journal of Operational Research (APJOR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().