Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain

Lashgari, Mohsen; Taleizadeh, Ata Allah; Ahmadi, Abbas

doi:10.1007/s10479-015-2100-5

Cited by 79 publications

(32 citation statements)

References 45 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Taleizadeh (2014aTaleizadeh ( , 2014b) extended an EOQ model for evaporating item under multiple equal-sized advance payments with and without partial backordering, respectively. Lashgari et al (2016) extended a three-echelon supply chain model and used the EOQ policy with partial downstream delayed payment and partial upstream advanced payment to manage the inventory of the buyer. Pourmohammad-Zia and Taleizadeh (2015) extended an inventory model with both partial advanced and partial delayed payments with full backordering.…”

mentioning

confidence: 99%

Lot‐sizing model with advance payment pricing and disruption in supply under planned partial backordering

Taleizadeh

2016

Int Trans Operational Res

Self Cite

View full text Add to dashboard Cite

Inventory management is a group of policies used to enhance company efficiencies in using the inventory and decrease its related costs. Inventory management policies operate efficiently only in the normal market environment. When the manager faces disruption, the common decisions do not lead to optimality. In this paper, a lot-sizing model for when the retailer may face disruption is developed. A portion of purchasing cost should be spent before delivery by several predetermined equal-sized advanced payments; shortage is permitted and will be partially back-ordered. The total cost function includes purchasing, holding, capital, backordering, and lost sale costs. The optimal decisions are obtained after proving the convexity of the expected total cost function. Finally, a solution algorithm is presented and several numerical examples and analysis are provided to show that the developed model and derived results can be applied to real-world problems.Keywords: interruption; advance payment; price; partial backordering; lot sizing Literature reviewInventory management is a group of policies used to enhance company efficiencies in using the inventory and decrease its related costs. The main goal of each inventory control system is improving the total profits of firms without decreasing the customers' satisfaction and also service levels. This area has attracted significant investigation since 1913 when the first mathematical model was developed by Harris, although most of these studies were performed under a deterministic environment (Cárdenas-Barrón et al., 2014). On the other hand, usually the cost of an order is spent at delivery time, while prepayment for some special products is commonly requested from the supplier ensuring that the purchaser never cancels the order.Nowadays, a new aspect of real-world problems named "disruption" has attracted both researchers' and practitioners' attention. Recently, the rate at which mathematical models are C 2016 The Authors.

show abstract

mentioning

confidence: 99%

Lot‐sizing model with advance payment pricing and disruption in supply under planned partial backordering

Taleizadeh

2016

Int Trans Operational Res

Self Cite

View full text Add to dashboard Cite

show abstract

“…Lashgari et al. () studied partial prepayment ( advance selling ) and delayed payments in an SC. Specifically, they developed an Economic Order Quantity (EOQ) model with downstream partial delayed payment and upstream partial prepayment with lost sales and backorder scenarios.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply chain financing with advance selling under disruption

Gupta

Chutani

2019

Int Trans Operational Res

View full text Add to dashboard Cite

We study a financing problem in a supply chain (SC) consisting of one supplier and one buyer under supply disruption. The supplier could face a disruption at its end which could effectively reduce its yield in case of disruption, thereby resulting in supply yield uncertainty. The retailer can finance the supplier using advance selling that can help mitigate the impact of disruption. We model this problem as a Stackelberg game, where the supplier as the leader announces the wholesale price and the retailer responds by deciding its optimal order quantity given stochastic demand and an exogenous fixed retail price. The supplier then commences production and a disruption can happen with a known probability. We assume that under disruption the quantity delivered is a fraction of the initial quantity ordered by the retailer. The retailer loses any unmet demand. We analyze three different scenarios of the Stackelberg game, namely no advance selling with disruption, advance selling without disruption, and advance selling with disruption. Our results indicate that advance selling can be used to mitigate the impact of supply disruption and at the same time could lead to an increase in the overall SC profit.

show abstract

“…A comprehensive and up-to-date review of trade credit inventory literature was provided by Kawale and Sanas (2017). More recent literature reports inventory models considering varying deterioration rate with shortages (Prasad and Mukherjee 2016), controllable deterioration rate with shortages (Mishra et al 2017), prepayment andplanned backordering (Taleizadeh et al 2018), partial prepayment and trade credit (Lashgari et al 2016), and inventory and credit decisions for deteriorating items (Jaggi et al 2019). However, these publications do not report any inventory model where a portion of serviceable products and a portion of deteriorating products are sold together to consumers considering multiple prepayments and a partial trade credit linked to order quantity under an inspection policy.…”

Section: Introductionmentioning

confidence: 99%

Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering

2019

Self Cite

View full text Add to dashboard Cite

The situation where serviceable products are sold together with a proportion of deteriorating products to consumers is rarely discussed in the literature. This article proposes an inventory model with disparate inventory ordering policies under a situation where a portion of serviceable products and a portion of deteriorating products are sold together to consumers (i.e. mixed sales). The ordering policies consider a hybrid payment strategy with multiple prepayment and partial trade credit schemes linked to order quantity under situations where no inventory shortage is allowed and inventory shortage is allowed with full backorder. The hybrid payment policy offered by a supplier is introduced into the classical economic ordering quantity model to investigate the optimal inventory cycle and the fraction of demand that is filled from the deteriorating products under inspection policy. Further, a new solution method is proposed that identifies optimal annual total profit with mixed sales assuming no inventory shortage and inventory shortage with full backorder. The impact of an inspection policy is investigated on the optimality of the solution under hybrid payment strategies for the deteriorating products. The validation of the proposed model and its solution method is demonstrated through several numerical examples. The results indicate that the inventory model along with the solution method provide a powerful tool to the retail managers under real-world situations. Results demonstrate that it is essential for the managers to consider inclusion of an inspection policy in the mixed sales of products, as the inspection policy significantly increases the net annual profit.

show abstract

Partial up-stream advanced payment and partial down-stream delayed payment in a three-level supply chain

Cited by 79 publications

References 45 publications

Lot‐sizing model with advance payment pricing and disruption in supply under planned partial backordering

Lot‐sizing model with advance payment pricing and disruption in supply under planned partial backordering

Supply chain financing with advance selling under disruption

Inventory ordering policies for mixed sale of products under inspection policy, multiple prepayment, partial trade credit, payments linked to order quantity and full backordering

Contact Info

Product

Resources

About