Partial Trade-Credit Policy of Retailer with Exponentially Deteriorating Items

Sarkar, Biswajit; Saren, Sharmila

doi:10.1007/s40819-014-0019-1

Cited by 25 publications

(11 citation statements)

References 43 publications

(42 reference statements)

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“…Furthermore, Jaggi et al [12], Jaggi [13], Taleizadeh et al [14], and Giri and Sharma [15] contributed by formulating an economic ordering model under two-stage trade credit financing. Besides these, some recent works related to credit/default risks in permissible delay policy contributed a lot in the literature, those of Shi and Zhang [16], Tiwari et al [17], Wu and Chan [18], Chen and Teng [19], Shah [20], Sarkar and Saren [21], Wu et al [22], Mahata and De [23], and Wu et al [24]. Although the use of downstream partial trade credit policy was gaining attention among academia to reduce the threats related to credit-risk customers, none of them had classified the end retailers into four categories, firstly as old and new and later as good and bad types, to further look upon bad debts as a direct loss to the whole seller, which is the main focus of this study.…”

Section: Literature Overviewmentioning

confidence: 99%

Supply Chain with Customer-Based Two-Level Credit Policies under an Imperfect Quality Environment

et al. 2018

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The present model develops a three-echelon supply chain, in which the manufacturer offers full permissible delay to the whole seller, while the latter, in turn, adopts distinct trade credit policies for his subsequent downstream retailers. The type of credit policy being offered to the retailers is decided on the basis of their past profiles. Hence, the whole seller puts forth full and partial permissible delays to his old and new retailers respectively. This study considers bad debts from the portion of new retailers who fail to make up for the delayed part of the partial payment. The analysis shows that it is beneficial for the whole seller to make shorter contracts, particularly with new retailers, along with the fetching of a higher fraction of initial purchase cost from them. In addition to the above-described scenario, the lot received by the whole seller from the manufacturer is not perfect, and it contains some defects for which he employs an inspection process before selling the items to the retailers. In order to make the study more realistic, Type-I, as well as Type-II misclassification errors, and the case of out-of-stock are considered. The impact of Type-I error has been found to be crucial in the study. The present paper determines the optimal policy for the whole seller by maximizing the expected total profit per unit time. For the optimality of the solution, theoretical results are provided. Finally, a numerical example and a sensitivity analysis are done to validate the model.

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Section: Literature Overviewmentioning

confidence: 99%

Supply Chain with Customer-Based Two-Level Credit Policies under an Imperfect Quality Environment

et al. 2018

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“…Some references of that types of systems are given by Chung et al [48], Choi et al [49], Wee et al [50], Sarkar and Saren [51], Kaliraman et al [52]. (8) Shortages are not considered as rate of production is bigger than the rate of demand i.e., P > D. …”

Section: Assumptionsmentioning

confidence: 99%

A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction

et al. 2016

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This paper formulates an integrated inventory model that allows Stackelberg game policy for optimizing joint total cost of a vendor and buyer system. After receiving the lot, the buyer commences an inspection process to determine the defective items. All defective items the buyer sends to vendor during the receiving of the next lot. Due to increasing number of shipments fixed and variable transportation, as well as carbon emissions, are considered, which makes the model sustainable integrated model forever. To reduce the setup cost for the vendor, a discrete setup reduction is considered for maximization more profit. The players of the integrated model are with unequal power (as leader and follower) and the Stackelberg game strategy is utilized to solve this model for obtaining global optimum solution over the finite planning horizon. An illustrative numerical example is given to understand this model clearly.

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“…Anand and Bansal [27] developed an EOQ model for both time varying demand and deterioration rate with shortages under permissible delay in payments. Several valuable contributions in this field were studied by Sarkar and Sarkar [28], Sarkar and Saren [29,30], Sana and Chaudhuri [31], Ouyang et al [32], Sana [33], Khanra et al [34,35], Das Roy et al [36], Sarkar [37,38]. Sarkar et al [39] developed an economic order quantity (EOQ) model for various types of time-dependent demand where delay-in-payments and price discount are permitted by suppliers to retailers.…”

Section: Introductionmentioning

confidence: 99%

A Comparative Study Between Inventory Followed by Shortages and Shortages Followed by Inventory Under Trade-Credit Policy

Khanra¹,

Mandal

Sarkar

2015

Int. J. Appl. Comput. Math

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This paper deals with a comparison between inventory followed by shortages model and shortages followed by inventory model with variable demand rate. It is assumed that the stock deteriorates over time which follows a two parameter Weibull distribution. Both the models are assumed fixed trade credit period to the retailer from the supplier. The model is solved analytically and the results are illustrated with numerical examples.

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Partial Trade-Credit Policy of Retailer with Exponentially Deteriorating Items

Cited by 25 publications

References 43 publications

Supply Chain with Customer-Based Two-Level Credit Policies under an Imperfect Quality Environment

Supply Chain with Customer-Based Two-Level Credit Policies under an Imperfect Quality Environment

A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction

A Comparative Study Between Inventory Followed by Shortages and Shortages Followed by Inventory Under Trade-Credit Policy

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