Coordination of a three-level supply chain (supplier–manufacturer–retailer) with permissible delay in payments and price discounts

Aljazzar, Salem M.; Jaber, Mohamad Y.; Moussawi-Haidar, Lama

doi:10.1016/j.apm.2017.04.011

Cited by 46 publications

(19 citation statements)

References 25 publications

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“…Ouyang et al (2009) discussed a supplier and a buyer supply chain problem with order-size dependent trade credit. Aljazzar et al (2017) developed a three-level supply chain with a delay in payments where its length (given by the supplier to the vendor and by the vendor to the buyer) is a decision variable. Marchi et al (2016) investigated different SCF solutions, i.e., the joint financing of investments across the supply chain.…”

Section: Joint Economic Lot Size Modelsmentioning

confidence: 99%

Improving Supply Chain Profit through Reverse Factoring: A New Multi-Suppliers Single-Vendor Joint Economic Lot Size Model

Marchi

Zanoni

Jaber

2020

IJFS

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Supply chain finance has been gaining attention in theory and practice. A company's financial position affects its performance and survivability in dynamic and volatile markets. Those that have weak financial performance are vulnerable when operating in environments that are uncertain and financially unstable. Companies adopt various solutions and techniques to manage, effectively and efficiently, the flow of money to and from its suppliers and buyers. Reverse factoring is an innovative technique in supply chain financing. This paper develops a joint economic lot size model where a vendor coordinates operational and financial decisions with its multiple suppliers through the establishment of a reverse factoring arrangement. The creditworthy vendor systematically informs a financial institution (e.g., bank) of payment obligations to selected suppliers, enabling the latter to borrow against the value of the relevant accounts receivable at low interest (borrowing) rates. The paper also presents a numerical example and a sensitivity analysis to illustrate the behavior of the model and to compare the economic and operational performance of a supply chain with and without a reverse factoring agreement. The results show that the establishment of a reverse factoring agreement within the supply chain improves the economic performance and impacts on the operational decisions.

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Section: Joint Economic Lot Size Modelsmentioning

confidence: 99%

Improving Supply Chain Profit through Reverse Factoring: A New Multi-Suppliers Single-Vendor Joint Economic Lot Size Model

Marchi

Zanoni

Jaber

2020

IJFS

Self Cite

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“…Re-distribution: The process of transporting the recovered or repaired goods to its users is called re-distribution. This may include sales, transportation and storage activities [15,16].…”

Section: Literature Reviewmentioning

confidence: 99%

Reverse Logistics Route Selection Using AHP: A Case Study of Electronics Scrap from Pakistan

Mushtaq

Shafiq

Savino

et al. 2018

IFIP Advances in Information and Communication Technology

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Selection of optimal route among available choices in the presence of various factors has been a prime focus in logistics. In this paper, Analytical Hierarchy Process (AHP) is used for selection of optimum route among available options for revere logistics of electronics scrap from Pakistan to the industry using End of Life (EOL) products as there raw material. The main objective of this study is to find out the optimal reverse logistic path for electronic scrap considering: cost of transportation, time of transportation, volume of goods to be transported, nature of goods (refurbished, recyclable or scrap), and financial value of the goods being transported. Recently developed China Pakistan Economic Corridor named as CPEC is also considered among available routes which are being analyzed. The results show that CPEC is the best possible route. In addition, the proposed mechanism also provides hierarchical list for the possible route preferences which helps in finding an alternate in case the best/better route isn't available due to some unavoidable factors.

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“…e conducted sensitivity analysis showed that when the retailer's delay periods increase, the total cost of the supply chain and the retailer's cost decrease. Aljazzar et al [15] explored the mathematical inventory model of a three-echelon supply chain under two levels of trade credit and price discounts and concluded that having trade credit and price discounts at the same time increases the supply chain profit more than using each of these mechanisms at a time.…”

Section: Introductionmentioning

confidence: 99%

Ordering Policies of a Deteriorating Item in an EOQ Model under Upstream Partial Order-Quantity-Dependent Trade Credit and Downstream Full Trade Credit

Molamohamadi

Mirzazadeh

2021

Advances in Operations Research

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In the classical inventory systems, the retailer had to settle the accounts of the purchased items at the time they were received. But in practice, the supplier applies some strategic tools, such as trade credit contract, to enhance his sales channel and offers delay period to his customers to settle the account. Any member of the supply chain may offer full or partial trade credit contract to his downstream level. Full trade credit is the case that the latter is allowed to defer the whole payment to the end of the credit period. In partial trade credit, however, the downstream supply chain member must pay for a proportion of the purchased goods at first and can delay paying for the rest until the end of the credit period. This paper considers a two-level trade credit, where the supplier offers order-quantity-dependent partial trade credit to a retailer, who suggests full trade credit to his customers. An economic order quantity (EOQ) inventory model of a deteriorating item is formulated here, and the Branch and Reduce Optimization Navigator is applied to find the optimal replenishment policy. The sensitivity of the variables on different parameters has been analyzed by applying some numerical examples. The data reveal that increasing the credit periods of the retailer and the customers can decrease and increase the retailer’s total cost, respectively.

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Coordination of a three-level supply chain (supplier–manufacturer–retailer) with permissible delay in payments and price discounts

Cited by 46 publications

References 25 publications

Improving Supply Chain Profit through Reverse Factoring: A New Multi-Suppliers Single-Vendor Joint Economic Lot Size Model

Improving Supply Chain Profit through Reverse Factoring: A New Multi-Suppliers Single-Vendor Joint Economic Lot Size Model

Reverse Logistics Route Selection Using AHP: A Case Study of Electronics Scrap from Pakistan

Ordering Policies of a Deteriorating Item in an EOQ Model under Upstream Partial Order-Quantity-Dependent Trade Credit and Downstream Full Trade Credit

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