Stochastic behavior of exchange rate on an international supply chain under random energy price

Mandeep Mittal, Biswajit Sarkar

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)


Monetary policy and logistics management are two important factors for international supply chain management. Selling imported items is a little bit more difficult rather than the domestic supply chain. This paper studies this context by developing a suitable policy for trade-credit financing. The supply chain management uses the just-in-time policy to increase efficiency. An inspection process runs for all inventory to eliminate the risk of random defective rates regarding the quality of items. The vendor uses a multiple shipment policy to deliver inventory to the buyer's end. The stochastic dollar exchange rate has importance in the international supply chain as supply chain players are situated in different countries. The vendor allows a fixed credit period for paying the wholesale price to the buyer. In the meantime, the buyer increases the sale and boosts the revenue. Environmental effects of carbon emission and randomness of energy prices are discussed within this study. Global optimality of the non-linear objective function is shown both theoretically and numerically by developing an algorithm. Sensitivity analysis has been provided based on the numerical experiment to find the changes in global minimum cost.

Original languageEnglish
Pages (from-to)232-250
Number of pages19
JournalMathematics and Computers in Simulation
Publication statusPublished - 2023 Mar

Bibliographical note

Funding Information:
The work is supported by the National Research Foundation of Korea (NRF) grant, funded by the Korea Government (MSIT) ( NRF-2020R1F1A1064460 ).

Publisher Copyright:
© 2022 International Association for Mathematics and Computers in Simulation (IMACS)

All Science Journal Classification (ASJC) codes

  • Theoretical Computer Science
  • Computer Science(all)
  • Numerical Analysis
  • Modelling and Simulation
  • Applied Mathematics


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