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

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

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

[[alternative]]The Study of Supply Chain Inventory Model with Price-Sensitive Demand and Trade Credit

計畫編號：NSC96-2416-H032-007研究期間：200708~200807研究經費：460,000[[abstract]]在現今競爭性的市場環境，企業已經由獨立決策改變為協同合作來制定策略。為降 低成本及改善服務水準，有效的供應鏈策略必須考慮在供應鏈中不同層級之間的互動關 係。在複雜的供應鏈中，存貨的控制是相當困難的工作，而且對顧客的服務水準及整體 供應鏈系統的成本有顯著的影響。因此，在供應鏈管理（Supply Chain Management, SCM）模式下建立適當的整合存貨模型，如何決定同一供應鏈上合作夥伴的最適庫存/ 訂購策略，使得存貨相關總成本為最小或總利潤為最大，是本研究的主要內容。 本研究為二年期的研究計畫，將在考量商品的需求量隨價格變動(即需求率為銷售 價格的遞減函數)，且允許信用交易(供應商允許零售商延遲付款)下，分別建立適當的 整合存貨模型，以決定供應鏈中供應商與零售商的最適存貨策略。第一年在需求率固 定、且供應商允許零售商延遲付款的情況下，嘗試建立分別以供應商為領導者（零售商 為跟隨者）、零售商為領導者（供應商為跟隨者）及雙方合作的供應鏈存貨模型，並求 出Stackelberg 均衡解。。第二年在市場需求率為零售商銷售價格的遞減函數，且供應商 允許零售商延遲付款的情況下，考量非合作與合作賽局策略，建立並求解供應商與零售 商的最佳存貨決策模式。我們將嘗試利用數學證明最佳解存在的充分且必要條件，接著 建立一個演算法求出使得單位時間總利潤有最大值的最適解。最後，以數值範例說明求 解過程，並對重要的參數值進行敏感性分析。[[sponsorship]]行政院國家科學委員

Supply chain single vendor – Single buyer inventory model with price-dependent demand

Purpose: The aim of this article is developing an integrated production-inventory-marketing model for a two-stage supply chain. The demand rate is considered as the Iso-elastic decreasing function of the selling price. The main research goal of the article is to obtain the optimal values of the selling price, order quantity and number of shipments for the proposed model under independent and also joint optimization. In addition, the effects of the model’s parameters on the optimal solution are investigated. Design/methodology/approach: Mathematical modeling is used to obtain the joint total profit function of the supply chain. Then, the iterative solution algorithm is presented to solve the model and determine the optimal solution. Findings and Originality/value: It is observed that under joint optimization, the demand rate and the supply chain’s profit are higher than their values under independent optimization, especially for the more price sensitive demand. Therefore, coordination between the buyer and the vendor is advantageous for the supply chain. On the other hand, joint optimization will be less beneficial when there isn’t a significant difference between the buyer’s and the vendor’s holding costs. Originality/value: The contribution of the article is determining the ordering and pricing policy jointly in the supply chain, which contains one vendor and one buyer while the demand rate is the Iso-elastic function of the selling pricePeer Reviewe

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 replenishment decisions under two-level trade credit with partial upstream trade credit linked to order quantity and limited storage capacity

[[abstract]]This paper extends the previous economic order quantity (EOQ) models under two-level trade credit such as Goyal (1985), Teng (2002), Huang (2003, 2007), Kreng and Tan (2010), Ouyang et al. (2013), and Teng et al. (2007) to reflect the real-life situations by incorporating the following concepts: (1) the storage capacity is limited, (2) the supplier offers the retailer a partially upstream trade credit linked to order quantity, and (3) both the dispensable assumptions that the upstream trade credit is longer than the downstream trade credit N<M and the interest charged per dollar per year is larger than or equal to the interest earned per dollar per year Ic<Ie are relaxed. We then study the necessary and sufficient conditions for finding the optimal solution for various cases and establish a useful algorithm to obtain the solution. Finally, numerical examples are given to illustrate the theoretical results and provide the managerial insights.[[notice]]補正完畢[[incitationindex]]SCI[[booktype]]紙本[[booktype]]電子