Abstract
This model extends a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade-credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced, where the supplier offers trade-credit-period to the buyer. For buyer, the backorder rate is considered as variable. There are two investments to reduce setup cost and to improve quality of products. The model assumes lead time-dependent backorder rate, where the lead time is stochastic in nature. By using the trade-credit policy, the model gives how the credit-period would be determined to achieve the win-win outcome. An iterative algorithm is designed to obtain the global optimum results. Numerical example and sensitivity analysis are given to illustrate the model.
| Original language | English |
|---|---|
| Article number | 6465912 |
| Journal | Mathematical Problems in Engineering |
| Volume | 2017 |
| DOIs | |
| Publication status | Published - 2017 Jan 1 |
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All Science Journal Classification (ASJC) codes
- Mathematics(all)
- Engineering(all)
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Supply Chain Model with Stochastic Lead Time, Trade-Credit Financing, and Transportation Discounts. / Kim, Sung Jun; Sarkar, Biswajit.
In: Mathematical Problems in Engineering, Vol. 2017, 6465912, 01.01.2017.Research output: Contribution to journal › Article
TY - JOUR
T1 - Supply Chain Model with Stochastic Lead Time, Trade-Credit Financing, and Transportation Discounts
AU - Kim, Sung Jun
AU - Sarkar, Biswajit
PY - 2017/1/1
Y1 - 2017/1/1
N2 - This model extends a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade-credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced, where the supplier offers trade-credit-period to the buyer. For buyer, the backorder rate is considered as variable. There are two investments to reduce setup cost and to improve quality of products. The model assumes lead time-dependent backorder rate, where the lead time is stochastic in nature. By using the trade-credit policy, the model gives how the credit-period would be determined to achieve the win-win outcome. An iterative algorithm is designed to obtain the global optimum results. Numerical example and sensitivity analysis are given to illustrate the model.
AB - This model extends a two-echelon supply chain model by considering the trade-credit policy, transportations discount to make a coordination mechanism between transportation discounts, trade-credit financing, number of shipments, quality improvement of products, and reduced setup cost in such a way that the total cost of the whole system can be reduced, where the supplier offers trade-credit-period to the buyer. For buyer, the backorder rate is considered as variable. There are two investments to reduce setup cost and to improve quality of products. The model assumes lead time-dependent backorder rate, where the lead time is stochastic in nature. By using the trade-credit policy, the model gives how the credit-period would be determined to achieve the win-win outcome. An iterative algorithm is designed to obtain the global optimum results. Numerical example and sensitivity analysis are given to illustrate the model.
UR - http://www.scopus.com/inward/record.url?scp=85020026666&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85020026666&partnerID=8YFLogxK
U2 - 10.1155/2017/6465912
DO - 10.1155/2017/6465912
M3 - Article
AN - SCOPUS:85020026666
VL - 2017
JO - Mathematical Problems in Engineering
JF - Mathematical Problems in Engineering
SN - 1024-123X
M1 - 6465912
ER -