English, Article edition: RETAILER'S INVENTORY POLICY AND SUPPLIER'S DELIVERY POLICY UNDER TWO-LEVEL TRADE CREDIT STRATEGY CHIA-HSIEN SU; LIANG-YUH OUYANG; CHIA-HUEI HO; ...

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Bookmark: http://trove.nla.gov.au/version/85210
Physical Description
  • article
Language
  • English

Edition details

Title
  • RETAILER'S INVENTORY POLICY AND SUPPLIER'S DELIVERY POLICY UNDER TWO-LEVEL TRADE CREDIT STRATEGY
Author
  • CHIA-HSIEN SU
  • LIANG-YUH OUYANG
  • CHIA-HUEI HO
  • CHUN-TAO CHANG
Physical Description
  • article
Notes
  • This paper presents a stylized model to determine the optimal strategy for the integrated supplier-retailer inventory model under the condition that both the supplier and retailer have adopted a trade credit strategy. By analyzing the total channel profit function, we develop an algorithm to simultaneously determine the retailer's optimal order quantity and the number of shipment per production run from the supplier to the retailer. Our results demonstrate that the trade credit strategy is effective to supply chain system performance when customers are sensitive to the credit period length offered by the retailer. Moreover, when customers are sensitive to the credit period, if the retailer conveys partial advantage gained from the trade credit offered by the supplier to customers by suitably adjusting the customer's credit period then the entire system and every channel partner can benefit.
  • Inventory, trade credit, integrated model, production, shipment
  • RePEc:wsi:apjorx:v:24:y:2007:i:05:p:613-630
Language
  • English
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