Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-05-07
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
The purpose of this paper is to investigate the role of trade credit and quantity discount in supply chain coordination when the sales effort effect on market demand is considered.
In this paper, we consider a two-echelon supply chain consisting of a single retailer ordering a single product from a single manufacturer.
Market demand is stochastic and is influenced by retailer sales effort.
We formulate an analytical model based on a single trade credit and find that the single trade credit cannot achieve the perfect coordination of the supply chain.
Then, we develop a hybrid quantitative analytical model for supply chain coordination by coherently integrating incentives of trade credit and quantity discount with sales effort effects.
The results demonstrate that, providing that the discount rate satisfies certain conditions, the proposed hybrid model combining trade credit and quantity discount will be able to effectively coordinate the supply chain by motivating retailers to exert their sales effort and increase product order quantity.
Furthermore, the hybrid quantitative analytical model can provide great flexibility in coordinating the supply chain to achieve an optimal situation through the adjustment of relevant parameters to resolve conflict of interests from different supply chain members.
Numerical examples are provided to demonstrate the effectiveness of the hybrid model.
American Psychological Association (APA)
Wang, Zhihong& Liu, Shaofeng. 2018. Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects. Mathematical Problems in Engineering،Vol. 2018, no. 2018, pp.1-15.
https://search.emarefa.net/detail/BIM-1206129
Modern Language Association (MLA)
Wang, Zhihong& Liu, Shaofeng. Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects. Mathematical Problems in Engineering No. 2018 (2018), pp.1-15.
https://search.emarefa.net/detail/BIM-1206129
American Medical Association (AMA)
Wang, Zhihong& Liu, Shaofeng. Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects. Mathematical Problems in Engineering. 2018. Vol. 2018, no. 2018, pp.1-15.
https://search.emarefa.net/detail/BIM-1206129
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1206129