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
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