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The simplified solution algorithm for an integrated supplier-buyer inventory model with two-part trade credit in a supply chain system

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  • Chung, Kun-Jen
  • Liao, Jui-Jung

Abstract

Ho et al. [Ho, C.H., Ouyang, L.Y., Su, C.H., 2008. Optimal pricing, shipment and payment policy for an integrated supplier-buyer inventory model with two-part trade credit, European Journal of Operational Research 187, 496-510] discussed the integrated inventory model with two-part trade credit and presented an algorithm to solve it. Basically, Ho et al.'s inventory model is correct and interesting. However, this paper indicates that the solution algorithm described in Ho et al. (2008) can be simplified further. So, this paper can not only derive the optimally closed-form formulations for the optimal numbers of shipments but also develop different algorithms to improve those in Ho et al. (2008). Numerical examples illustrate that the algorithm to locate the optimal solution is rather accurate and rapid.

Suggested Citation

  • Chung, Kun-Jen & Liao, Jui-Jung, 2011. "The simplified solution algorithm for an integrated supplier-buyer inventory model with two-part trade credit in a supply chain system," European Journal of Operational Research, Elsevier, vol. 213(1), pages 156-165, August.
    • Handle: RePEc:eee:ejores:v:213:y:2011:i:1:p:156-165
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    Cited by:

    1. Liang-Yuh Ouyang & Cheng-Ju Chuang & Chia-Huei Ho & Chien-Wei Wu, 2014. "An integrated inventory model with quality improvement and two-part credit policy," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(3), pages 1042-1061, October.
    2. Zhou, Yong-Wu & Zhong, Yuanguang & Li, Jicai, 2012. "An uncooperative order model for items with trade credit, inventory-dependent demand and limited displayed-shelf space," European Journal of Operational Research, Elsevier, vol. 223(1), pages 76-85.
    3. Liao, Jui-Jung & Chung, Kun-Jen & Huang, Kuo-Nan, 2013. "A deterministic inventory model for deteriorating items with two warehouses and trade credit in a supply chain system," International Journal of Production Economics, Elsevier, vol. 146(2), pages 557-565.
    4. A. Thangam, 2017. "Retailer’s optimal replenishment policy in a two-echelon supply chain under two-part delay in payments and disruption in delivery," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 26-46, January.
    5. Juanjuan Qin & Xiaojian Bai & Liangjie Xia, 2015. "Sustainable Trade Credit and Replenishment Policies under the Cap-And-Trade and Carbon Tax Regulations," Sustainability, MDPI, vol. 7(12), pages 1-22, December.
    6. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    7. Tiwari, Sunil & Cárdenas-Barrón, Leopoldo Eduardo & Khanna, Aditi & Jaggi, Chandra K., 2016. "Impact of trade credit and inflation on retailer's ordering policies for non-instantaneous deteriorating items in a two-warehouse environment," International Journal of Production Economics, Elsevier, vol. 176(C), pages 154-169.

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