Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment

Joint Authors

Yang, Honglin
Yuan, Jijun
Yu, Ya
Zha, Yong

Source

Mathematical Problems in Engineering

Issue

Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-8, 8 p.

Publisher

Hindawi Publishing Corporation

Publication Date

2014-07-13

Country of Publication

Egypt

No. of Pages

8

Main Subjects

Civil Engineering

Abstract EN

In real supply chain, a capital-constrained retailer has two typical payment choices: the up-front payment to receive a high discount price or the delayed payment to reduce capital pressure.

We compare with the efficiency of optimal decisions of different participants, that is, supplier, retailer, and bank, under both types of payments based on a game equilibrium analysis.

It shows that under the equilibrium, the delayed payment leads to a greater optimal order quantity from the retailer compared to the up-front payment and, thus, improves the whole benefit of the supply chain.

The numerical simulation for the random demand following a uniform distribution further verifies our findings.

This study provides novel evidence that a dominant supplier who actively offers trade credit helps enhance the whole efficiency of a supply chain.

American Psychological Association (APA)

Yang, Honglin& Yu, Ya& Zha, Yong& Yuan, Jijun. 2014. Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment. Mathematical Problems in Engineering،Vol. 2014, no. 2014, pp.1-8.
https://search.emarefa.net/detail/BIM-496991

Modern Language Association (MLA)

Yang, Honglin…[et al.]. Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment. Mathematical Problems in Engineering No. 2014 (2014), pp.1-8.
https://search.emarefa.net/detail/BIM-496991

American Medical Association (AMA)

Yang, Honglin& Yu, Ya& Zha, Yong& Yuan, Jijun. Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment. Mathematical Problems in Engineering. 2014. Vol. 2014, no. 2014, pp.1-8.
https://search.emarefa.net/detail/BIM-496991

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references

Record ID

BIM-496991