Two-Level Credit Financing for Noninstantaneous Deterioration Items in a Supply Chain with Downstream Credit-Linked Demand
Joint Authors
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-22, 22 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-09-26
Country of Publication
Egypt
No. of Pages
22
Main Subjects
Abstract EN
Trade credit financing is a useful tool in business today, which can be characterized as the agreement between supply chain members such as permissible delay in payments.
In this study, we assume that the items have the property of noninstantaneous deterioration and the demand is a function of downstream credit.
Then, an EOQ model for noninstantaneous deterioration is built based on the two-level financing policy.
The purpose of this paper is to maximize the total average profit by determine the optimal downstream credit period, the optimal replenishment cycle length, and the optimal ordering quantity per cycle.
Useful theorems are proposed to characterize the method of obtaining the optimal solutions.
Based on the theorems, an algorithm is designed, and numerical tests and sensitive analysis are provided.
Lastly, according to the sensitive analysis, managerial insights are proposed.
American Psychological Association (APA)
He, Yong& Huang, Hongfu. 2013. Two-Level Credit Financing for Noninstantaneous Deterioration Items in a Supply Chain with Downstream Credit-Linked Demand. Discrete Dynamics in Nature and Society،Vol. 2013, no. 2013, pp.1-22.
https://search.emarefa.net/detail/BIM-508014
Modern Language Association (MLA)
He, Yong& Huang, Hongfu. Two-Level Credit Financing for Noninstantaneous Deterioration Items in a Supply Chain with Downstream Credit-Linked Demand. Discrete Dynamics in Nature and Society No. 2013 (2013), pp.1-22.
https://search.emarefa.net/detail/BIM-508014
American Medical Association (AMA)
He, Yong& Huang, Hongfu. Two-Level Credit Financing for Noninstantaneous Deterioration Items in a Supply Chain with Downstream Credit-Linked Demand. Discrete Dynamics in Nature and Society. 2013. Vol. 2013, no. 2013, pp.1-22.
https://search.emarefa.net/detail/BIM-508014
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-508014