A MODEL FOR DETERMINING AN OPTIMAL LABOR CONTRACT UNDER PROFIT SHARING SYSTEM

Profit sharing concept fascinates various points of views, such as decision makers, media, academicians, etc., since remarkable work paper published by Weitzman (1984, 1985). Wage bargaining theory is undoubtedly a vital factor in profit sharing system. This research uses Nash bargaining solution in order to obtain the optimal agreement point over wages and employment. Unfortunately, most of the study done on the same topic assumed that the workers receive share of profit equally. Logically, each of the workers has different qualifications which are affect their productivity. A different assumption of the workers heterogeneity is used in this research in order to reduce the probability of unfairness among the workers because of the equality portion of profit sharing

Collaboration and information sharing in dyadic supply chains: A literature review over the period 2000–2012

Information sharing and coordination between the agents of a supply chain are considered to be an effective strategy for improving its global performance. This paper presents an updated review of current literature examining the impacts of information sharing and collaboration strategies on supply chain dynamic performance, with particular focus on dyadic structure. To achieve this, a systematic review approach is followed over the period 2000–2012, intending to ensure that the process is reproducible and auditable. A comprehensive taxonomy is also presented, highlighting strategic and operational impacts of collaborative structures. The analysis revealed that collaborative and information sharing issues underlined 10 years ago still require further attention from researchers

The influence of financial conditions on optimal ordering and payment policies under progressive interest schemes

In many business-to-business transactions, the buyer is not required to pay immediately after the receipt of an order, but is instead allowed to postpone the payment to its suppliers for a certain period. In such a situation, the buyer can either settle the account at the end of the credit period or authorize the payment later, usually at the expense of interest that is charged by the supplier on the outstanding balance. Some payment terms, which are often referred to as trade credit contracts, contain progressive interest charges. In such cases, the supplier offers a sequence of credit periods, where the interest rate that is charged on the outstanding balance usually increases from period to period. If a buyer faces a progressive trade credit scheme, various options for settling the unpaid balance exist, where the financial impact of each option depends on the current credit interest structure and the alternative investment conditions. This paper studies the influence of different financial conditions in terms of alternative investment opportunities and credit interest structure on the optimal ordering and payment policies of a buyer on the condition that the supplier provides a progressive interest scheme. For this purpose, mathematical models are developed and analyzed

Decentralized and centralized supply chains with trade credit option

The notion of a trade credit period is a common business practice, where a supplier allows a buyer a specified period to make a payment in full for a purchase made. The objective of this thesis is to explore the role of such a credit payment option in supply chain management. Towards this end, a two-echelon supply chain, consisting of a single supplier (e.g. manufacturer) and the cases of both a single and multiple buyers (e.g. retailers) is examined under decentralized (independent) and centralized (coordinated) decision making scenarios. The major emphasis of this research is limited to the case of a single product with price-sensitive deterministic, as well as stochastic market demand.The conditions under which a trade credit period should be offered and its appropriate length are determined from the supplier’s perspective under the decentralized case. Under the centralized decision scenario, the efficacy of a trade credit policy as a supply chain coordination mechanism is thoroughly analyzed and guidelines for pricing, production and delivery decisions are developed. The concepts developed in this study are illustrated via a number of numerical examples, in conjunction with thorough sensitivity analyses involving some selected problem parameters.The major contribution of this thesis is that we incorporate the pricing and inventory issues in supply chains with an endogenous credit payment period. This is the first study that examines the efficacy of trade credit option as a coordination mechanism. We propose a coordination mechanism that coordinates the supply chain, when a trade credit by itself is not sufficient to serve such a purpose, while preserving the benefits of a trade credit option. Also, this study is the first to examine the issues concerning trade credit under price sensitive stochastic demand. Another first for this work is the exploration of the implications of a trade credit policy in supply chains consisting of multiple competing retailers. The effects of the extent of competition and the market size on trade credit policy are evaluated. Our analyses lead to some important practical implications, to serve as managerial guidelines.Ph.D., Decision Sciences -- Drexel University, 201

Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications