Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract
A supply chain of single manufacturer and single retailer is analyzed when units in warehouse are subject to deterioration at a constant rate. The demand is a decreasing function of selling price and increasing function of credit period offered by the retailer to the customers. Manufacturer follows...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2015-12-01
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| Series: | Cogent Engineering |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23311916.2015.1012989 |
| _version_ | 1797700839205240832 |
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| author | Nita H. Shah |
| author_facet | Nita H. Shah |
| author_sort | Nita H. Shah |
| collection | DOAJ |
| description | A supply chain of single manufacturer and single retailer is analyzed when units in warehouse are subject to deterioration at a constant rate. The demand is a decreasing function of selling price and increasing function of credit period offered by the retailer to the customers. Manufacturer follows a lot-for-lot production strategy. The manufacturer ensures delay payment to the retailer with agreement that the retailer will share a fraction of the profit realized during the credit period. The total joint profit of the supply chain is maximized with respect to replenishment time, selling price, and credit period. An algorithm is described to find the best strategy. Numerical examples are given to validate the proposed problem. Sensitivity analysis is carried out to examine important model parameters. |
| first_indexed | 2024-03-12T04:27:21Z |
| format | Article |
| id | doaj.art-eaa31635ee244f2fb31c89ecd82bfbcf |
| institution | Directory Open Access Journal |
| issn | 2331-1916 |
| language | English |
| last_indexed | 2024-03-12T04:27:21Z |
| publishDate | 2015-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Engineering |
| spelling | doaj.art-eaa31635ee244f2fb31c89ecd82bfbcf2023-09-03T10:16:28ZengTaylor & Francis GroupCogent Engineering2331-19162015-12-012110.1080/23311916.2015.10129891012989Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contractNita H. Shah0Gujarat UniversityA supply chain of single manufacturer and single retailer is analyzed when units in warehouse are subject to deterioration at a constant rate. The demand is a decreasing function of selling price and increasing function of credit period offered by the retailer to the customers. Manufacturer follows a lot-for-lot production strategy. The manufacturer ensures delay payment to the retailer with agreement that the retailer will share a fraction of the profit realized during the credit period. The total joint profit of the supply chain is maximized with respect to replenishment time, selling price, and credit period. An algorithm is described to find the best strategy. Numerical examples are given to validate the proposed problem. Sensitivity analysis is carried out to examine important model parameters.http://dx.doi.org/10.1080/23311916.2015.1012989Single manufacturer and single retailerdeteriorationlot-for-lot production strategytwo-level trade credit financingprice-sensitive credit-linked demandprofit sharing contract |
| spellingShingle | Nita H. Shah Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract Cogent Engineering Single manufacturer and single retailer deterioration lot-for-lot production strategy two-level trade credit financing price-sensitive credit-linked demand profit sharing contract |
| title | Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract |
| title_full | Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract |
| title_fullStr | Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract |
| title_full_unstemmed | Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract |
| title_short | Manufacturer-retailer inventory model for deteriorating items with price-sensitive credit-linked demand under two-level trade credit financing and profit sharing contract |
| title_sort | manufacturer retailer inventory model for deteriorating items with price sensitive credit linked demand under two level trade credit financing and profit sharing contract |
| topic | Single manufacturer and single retailer deterioration lot-for-lot production strategy two-level trade credit financing price-sensitive credit-linked demand profit sharing contract |
| url | http://dx.doi.org/10.1080/23311916.2015.1012989 |
| work_keys_str_mv | AT nitahshah manufacturerretailerinventorymodelfordeterioratingitemswithpricesensitivecreditlinkeddemandundertwoleveltradecreditfinancingandprofitsharingcontract |