The consignment stock case for a vendor and a buyer with delay-in-payments

Zahran, Siraj K.; Jaber, Mohamad Y.; Zanoni, Simone

doi:10.1016/j.cie.2016.06.010

Cited by 20 publications

(15 citation statements)

References 40 publications

(66 reference statements)

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“…Sarkar [25] (2012) examined an imperfect production model with delayed payments and stock-based demand. Zahran et al [40] (2016) studied the CS case with delay-in-payments for single-vendor and single-buyer. Shabani et al [27] (2016) developed an inventory model with a two-warehouse inventory, fuzzy demand rate under permissible delay in payment.…”

Section: Literature Reviewmentioning

confidence: 99%

A single-consignor multi-consignee multi-item model with permissible payment delay, delayed shipment and variable lead time under consignment stock policy

Karthick

Uthayakumar

2021

RAIRO-Oper. Res.

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This article proposes a two-level fuzzy supply chain inventory model, in which a single consignor delivers multiple items to the multiple consignees with the consignment stock agreement. The lead time is incorporated into the model and is considered a variable for obtaining optimal replenishment decisions. In addition, crashing cost is employed to reduce the lead time duration. This article investigates four different cases under controllable lead time to analyze the best strategy, focusing on two delays such as delay-in-payments and delay-in-shipment. In all four cases, all associated inventory costs are treated as a trapezoidal fuzzy number, and a signed distance method is employed to defuzzify the fuzzy inventory cost. An efficient optimization technique is adopted to find the optimal solution for the supply chain. Four numerical experiments are conducted to illustrate the four cases. Any one of these experimental results will provide the best solution for the ideal performance of the business under controllable lead time in the consignment stock policy. Finally, the managerial insights, conclusion and future direction of this model are provided.

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Section: Literature Reviewmentioning

confidence: 99%

A single-consignor multi-consignee multi-item model with permissible payment delay, delayed shipment and variable lead time under consignment stock policy

Karthick

Uthayakumar

2021

RAIRO-Oper. Res.

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“…Delay in payment also used as a strategy to increase sales and reduce inventory in the warehouse. Several previous studies have proven that the policy has a positive impact on companies [9,14,15,21,25,27,28]. When the delay in payment applied in a supply chain system, total supply chain costs can decrease [9].…”

Section: Introductionmentioning

confidence: 98%

“…Supply Chain Management (SCM) become one of the centers of attention in a company with the aim of corporate sustainability. The supply chain is a very complex topic when it involves many functional areas inside and outside the company for improving company performance [9]. Besides, the supply chain is running to minimize costs.…”

Section: Introductionmentioning

confidence: 99%

Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration

Ibrahim

Putri

2019

JTI

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In practice, the policy of delaying payment periods is prevalent between players in a supply chain system. Generally, payments made at the end of the permitted period. Supply chain management is one of the keys to corporate sustainability that the activities have an impact on the environment. This paper aims to develop an integrated green supply chain model with a permissible delay in payment consideration. In this research, the author develops a mathematical model to find the effect of delay in payment on emissions costs without ignoring the economic performance of a supply chain. The author develops four different scenarios model. Furthermore, numerical experiments and sensitivity analysis tests were conducted. Result of the study shows that delay in payment is integrated players into the supply chain system. It has a positive impact on reducing supply chain emissions costs.

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“…Consignment stock can improve the supply chain improvement, because vendor uses its buyer's warehouse capacity to store goods. The operation of consignment-store-based supply chain depends on the policy of its operation; therefore, it is important to optimize its operation strategy [15]. The first work investigated the consignment contracting and defined the role of consignment; it can limit the middleman's commitment and increase the profitability of sales [16].…”

Section: Research On Consignment Storesmentioning

confidence: 99%

“…There has recently been an Complexity 3 increased interest in performance analysis of supply chains [1][2][3][4][5][6][7][8][9][10][11][12][13][14] and some recent analysis has been targeted specifically towards the integration of consignment stores into supply chain processes [15][16][17][18][19][20][21] and optimization with metaheuristics based on swarming algorithms [22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40], especially black hole optimization. Firstly, the relevant terms were defined and the initial searches were conducted.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimization of Consignment-Store-Based Supply Chain with Black Hole Algorithm

Bányai

Illés

2017

Complexity

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The globalization of economy and market led to increased networking in the field of manufacturing and services. These manufacturing and service processes including supply chain became more and more complex. The supply chain includes in many cases consignment stores. The design and operation of these complex supply chain processes can be described as NP-hard optimization problems. These problems can be solved using sophisticated models and methods based on metaheuristic algorithms. This research proposes an integrated supply model based on consignment stores. After a careful literature review, this paper introduces a mathematical model to formulate the problem of consignment-store-based supply chain optimization. The integrated model includes facility location and assignment problems to be solved. Next, an enhanced black hole algorithm dealing with multiobjective supply chain model is presented. The sensitivity analysis of the heuristic black hole optimization method is also described to check the efficiency of new operators to increase the convergence of the algorithm. Numerical results with different datasets demonstrate how the proposed model supports the efficiency, flexibility, and reliability of the consignment-store-based supply chain.

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The consignment stock case for a vendor and a buyer with delay-in-payments

Cited by 20 publications

References 40 publications

A single-consignor multi-consignee multi-item model with permissible payment delay, delayed shipment and variable lead time under consignment stock policy

A single-consignor multi-consignee multi-item model with permissible payment delay, delayed shipment and variable lead time under consignment stock policy

Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration

Optimization of Consignment-Store-Based Supply Chain with Black Hole Algorithm

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