[[alternative]]Economic Order Quantity under Conditions of a One-Time-Only Extended Permissible Delay Period in Payments

計畫編號：NSC96-2416-H032-006研究期間：200708~200807研究經費：362,000[[abstract]]在現今商業交易頻繁的環境中，供應商常常會提供允許延遲付款的寬限期給消費者。然而，在某些特定的期間(如春節、耶誕節、公司週年慶等)，供應商所提供之延遲付款的寬限期，可能較平日的寬限期為長。本研究首先將構建一數學模式，探討在特定時間，只允許提供一次較長延遲付款的寬限期的情況下，消費者該如何決定其最適的特定期間訂購量。接著，推導出一演算法協助尋找最適的特別訂購量。最後，再以案例說明及驗證理論的結果。[[sponsorship]]行政院國家科學委員

Economic order quantity under retailer partial trade credit in two-echelon supply chain

In this paper, we want to investigate the retailer’s inventory policy when the retailer maintains a powerful position in two-echelon supply chain. That is, we assumed that the retailer can obtain the full trade credit offered by the supplier yet the retailer just offers the partial trade credit to their customers under two-level trade credit situation. Then, we investigate the retailer’s inventory system as a cost minimization problem to determine the retailer’s optimal inventory policy in two-echelon supply chain. Finally, numerical examples are given to illustrate the results and to obtain managerial insights

Economic ordering and payment policies under progressive payment schemes and time-value of money

Trade credits have received considerable attention in recent years and have become one of the most important sources of short-term funding for many companies. The paper at hand studies the optimal ordering and payment policies of a buyer assuming that the supplier offers a progressive interest scheme. The contribution to the literature is twofold. First, the different financial conditions of the companies involved are taken into account by assuming that the credit interest rate of the buyer may, but not necessarily has to, exceed the interest rate charged by the supplier. In addition, the time-value of money is considered in this scenario which is relevant when trade credit terms are valid for a long period of time and payment flows need to be evaluated by their net present value to ensure long-term profitability. The models proposed enable decision makers to improve ordering and payment decisions and the results reveal that taking into account the temporal allocation of payments, the prevailing interest relation influences replenishment policies significantly

Optimal Ordering policy in demand declining market under inflation when supplier credits linked to order quantity

In this research paper, a lot–size model is proposed when supplier offers the retailer a credit period to settle the account if the retailer orders a large quantity. The proposed study is meant for demand declining market. Here, the retailer needs to arrive at a static decision when demand of a product is decreasing and on the other side the supplier offer the credit period if the retailer orders for more than pre – specified quantity. Shortages are not allowed and the effect of inflation is incorporated. The objective to minimize the total cost in demand declining market under inflation when the supplier offers a credit period to the retailer if the ordered quantity is greater than or equal to pre – specified quantity. An easy – to – use flow chart is given to find the optimal replenishment time and the order quantity. The mathematical formulation is supported by a numerical example. The sensitivity analysis of parameters on the optimal solution is carried out

Supply chain finance for ameliorating and deteriorating products: a systematic literature review

Ameliorating and deteriorating products, or, more generally, items that change value over time, present a high sensitiveness to the surrounding environment (e.g., temperature, humidity, and light intensity). For this reason, they should be properly stored along the supply chain to guarantee the desired quality to the consumers. Specifically, ameliorating items face an increase in value if there are stored for longer periods, which can lead to higher selling price. At the same time, the costumers’ demand is sensitive to the price (i.e., the higher the selling price the lower the final demand), sensitiveness that is related to the quality of the products (i.e., lower sensitiveness for high-quality products). On the contrary, deteriorating items lose quality and value over time which result in revenue losses due to lost sales or reduced selling price. Since these products need to be properly stored (i.e., usually in temperature- and humidity-controlled warehouses) the holding costs, which comprise also the energy costs, may be particularly relevant impacting on the economic, environmental, and social sustainability of the supply chain. Furthermore, due to the recent economic crisis, companies (especially, small and medium enterprises) face payment difficulties of customers and high volatility of resources prices. This increases the risk of insolvency and on the other hand the financing needs. In this context, supply chain finance emerged as a mean for efficiency by coordinating the financial flow and providing a set of financial schemes aiming at optimizing accounts payable and receivable along the supply chain. The aim of the present study is thus to investigate through a systematic literature review the two main themes presented (i.e., inventory management models for products that change value over time, and financial techniques and strategies to support companies in inventory management) to understand if any financial technique has been studied for supporting the management of this class of products and to verify the existing literature gap

A periodic review inventory model with stock dependent demand, permissible delay in payment and price discount on backorders

In this paper we study a periodic review inventory model with stock dependent demand. When stock on hand is zero, the inventory manager offers a price discount to customers who are willing to backorder their demand. Permissible delay in payments allowed to the inventory manager is also taken into account. Numerical examples are cited to illustrate the model

Optimal Pricing and Ordering Policy under Permissible Delay in Payments

This study develops an inventory model to determine an optimal cycle time and optimal total annual profit for non-deteriorating items under permissible delay in payments. Mathematical models have been derived for obtaining the optimal cycle time and optimal price, so that the annual total profit is maximized. This paper also develops the model by considering particular cases (A) and (B) respectively. We obtain price and lot size simultaneously when supplier offers a permissible delay in payments. The demand rate is assumed to be a function of price and time. Finally, a numerical example is given to illustrate the proposed model. Key words: Pricing, Inventory, Permissible delay, Non- deterioration, Finance, Quantit

Retailer’s Optimal Ordering Policies with Two Stage Credit Policies and Imperfect Quality

Two levels of trade credits refers that the supplier provides to his/her retailer a permissible delay period (M) in paying for purchasing items and the retailer also in turn provides a permissible delay period (N,M > N) to his/her customer to stimulate his product demand. When lot received by retailer, it may be contain some imperfect quality of goods by the causes of non-ideal production process or other causes. So retailers perform a screening process to find the imperfect items and returned to the supplier immediately. Therefore, an attempt is made in this paper to develop the retailer’s optimal ordering policies in supply chain coordination with upstream and downstream trade credits and imperfect quality. The propose paper considers two cases N ≤ M and M≤ N that is more near to real world cases. Some numerical examples are used to be show validity of this paper.Key words: Inventory; Imperfect items; Up-stream and down-stream trade credits and supply chai

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