article

Coordinating a two-level supply chain with delay in payments and profit sharing

Authors:

I. H. OsmanAuthors Info & Claims

Computers and Industrial Engineering, Volume 50, Issue 4

Pages 385 - 400

https://doi.org/10.1016/j.cie.2005.08.004

Published: 01 August 2006 Publication History

Abstract

Achieving effective coordination among suppliers and retailers has become a pertinent research issue in supply chain management. Channel coordination is a joint decision policy achieved by a supplier(s) and a retailer(s) characterized by an agreement on the order quantity and the trade credit scenario (e.g., quantity discounts, delay in payments). This paper proposes a centralized model where players in a two-level (supplier-retailer) supply chain coordinate their orders to minimize their local costs and that of the chain. In the proposed supply chain model the permissible delay in payments is considered as a decision variable and it is adopted as a trade credit scenario to coordinate the order quantity between the two-levels. Computational results indicate that with coordination, the retailer orders in larger quantities than its economic order quantity, with savings to either both players, or to one in the supply chain. Moreover, a profit-sharing scenario for the distribution of generated net savings among the players in the supply chain is presented. Analytical and experimental results are presented and discussed to demonstrate the effectiveness of the proposed model.

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Nematollahi MHosseini-Motlagh SCárdenas-Barrón LTiwari S(2022)Coordinating visit interval and safety stock decisions in a two-level supply chain with shelf-life considerationsComputers and Operations Research10.1016/j.cor.2021.105651139:COnline publication date: 1-Mar-2022
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cover image Computers and Industrial Engineering

Computers and Industrial Engineering Volume 50, Issue 4

Special issue: Sustainability and globalization: Selected papers from the 32 ^nd ICC&IE

August 2006

184 pages

ISSN:0360-8352

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Pergamon Press, Inc.

United States

Publication History

Published: 01 August 2006

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Cited By

Nematollahi MHosseini-Motlagh SCárdenas-Barrón LTiwari S(2022)Coordinating visit interval and safety stock decisions in a two-level supply chain with shelf-life considerationsComputers and Operations Research10.1016/j.cor.2021.105651139:COnline publication date: 1-Mar-2022
https://dl.acm.org/doi/10.1016/j.cor.2021.105651
Mu XKang KZhang J(2022)Dual-channel supply chain coordination considering credit sales competitionApplied Mathematics and Computation10.1016/j.amc.2022.127420434:COnline publication date: 1-Dec-2022
https://dl.acm.org/doi/10.1016/j.amc.2022.127420
Hayrutdinov SSaeed ATong L(2020)Blockchain Technology Adoption via Contractual Coordination MechanismsProceedings of the 2020 3rd International Conference on Blockchain Technology and Applications10.1145/3446983.3446989(19-26)Online publication date: 14-Dec-2020
https://dl.acm.org/doi/10.1145/3446983.3446989
Agrawal AYadav S(2020)Price and profit structuring for single manufacturer multi-buyer integrated inventory supply chain under price-sensitive demand conditionComputers and Industrial Engineering10.1016/j.cie.2019.106208139:COnline publication date: 1-Jan-2020
https://dl.acm.org/doi/10.1016/j.cie.2019.106208
Lv DZeng PLan H(2018)Co-patent, financing constraints, and innovation in SMEsJournal of Engineering and Technology Management10.1016/j.jengtecman.2018.02.00148:C(15-27)Online publication date: 1-Apr-2018
https://dl.acm.org/doi/10.1016/j.jengtecman.2018.02.001
Alavi SJabbarzadeh A(2018)Supply chain network design using trade credit and bank creditComputers and Industrial Engineering10.1016/j.cie.2018.08.005125:C(69-86)Online publication date: 1-Nov-2018
https://dl.acm.org/doi/10.1016/j.cie.2018.08.005
Wang JRen Y(2017)Supply Chain Coordination through a Revenue-Sharing Contract with Two Kinds of Fuzzy DemandInternational Journal of Information Systems and Supply Chain Management10.4018/IJISSCM.201710010110:4(1-17)Online publication date: 1-Oct-2017
https://dl.acm.org/doi/10.4018/IJISSCM.2017100101
Abdul-Jalbar BColebrook MDorta-Guerra RGutiérrez J(2016)Centralized and decentralized inventory policies for a single-vendor two-buyer system with permissible delay in paymentsComputers and Operations Research10.1016/j.cor.2016.04.03074:C(187-195)Online publication date: 1-Oct-2016
https://dl.acm.org/doi/10.1016/j.cor.2016.04.030
Zahran SJaber MZanoni SZavanella L(2015)Payment schemes for a two-level consignment stock supply chain systemComputers and Industrial Engineering10.1016/j.cie.2015.05.02487:C(491-505)Online publication date: 1-Sep-2015
https://dl.acm.org/doi/10.1016/j.cie.2015.05.024
Ouyang LHo CSu CYang C(2015)An integrated inventory model with capacity constraint and order-size dependent trade creditComputers and Industrial Engineering10.1016/j.cie.2014.12.03584:C(133-143)Online publication date: 1-Jun-2015
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