In the current socio-economic situation, the daily demand for essential goods in the business sector is always changing owing to various unavoidable reasons. Choosing the right method for a profitable business has become quite tricky. The proposed study introduces different business strategies based on trade credit, revenue sharing contract, variable demand and production rate. As trade credit is one of the best policies to attract customers, there are two types of models based on it. In the first model, demand depends on average selling price, green degree, and products quality. An additional trade-credit factor is in the second model. However, considering coordination, non-coordination, and revenue sharing contracts, each model has three sub-cases. The main aim is to find the best strategy for the profit maximization of the supply chain members. Green investment, maintenance, and multi-factor dependent demand make the model more sustainable. The global optimization is established theoretically and different propositions are developed. Through numerical experiments, the global optimality is also verified. Some special cases, with a comparative graph, are provided for the validation of these results and to find the best strategy for profit maximization. Finally, some concluding remarks along with future extensions are discussed.
|Journal||Complex and Intelligent Systems|
|Publication status||Accepted/In press - 2022|
Bibliographical noteFunding Information:
The work is supported by the National Research Foundation of Korea (NRF) grant, funded by the Korea Government (MSIT) (NRF-2020R1F1A1064460).
© 2022, The Author(s).
All Science Journal Classification (ASJC) codes
- Artificial Intelligence
- Information Systems
- Engineering (miscellaneous)
- Computational Mathematics