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Stochastic behavior of exchange rate on an international supply chain under random energy price

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  • Mittal, Mandeep
  • Sarkar, Biswajit

Abstract

Monetary policy and logistics management are two important factors for international supply chain management. Selling imported items is a little bit more difficult rather than the domestic supply chain. This paper studies this context by developing a suitable policy for trade-credit financing. The supply chain management uses the just-in-time policy to increase efficiency. An inspection process runs for all inventory to eliminate the risk of random defective rates regarding the quality of items. The vendor uses a multiple shipment policy to deliver inventory to the buyer’s end. The stochastic dollar exchange rate has importance in the international supply chain as supply chain players are situated in different countries. The vendor allows a fixed credit period for paying the wholesale price to the buyer. In the meantime, the buyer increases the sale and boosts the revenue. Environmental effects of carbon emission and randomness of energy prices are discussed within this study. Global optimality of the non-linear objective function is shown both theoretically and numerically by developing an algorithm. Sensitivity analysis has been provided based on the numerical experiment to find the changes in global minimum cost.

Suggested Citation

  • Mittal, Mandeep & Sarkar, Biswajit, 2023. "Stochastic behavior of exchange rate on an international supply chain under random energy price," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 205(C), pages 232-250.
    • Handle: RePEc:eee:matcom:v:205:y:2023:i:c:p:232-250
    DOI: 10.1016/j.matcom.2022.09.007
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    3. Osama Abdulaziz Alamri, 2023. "A Supply Chain Model with Carbon Emissions and Preservation Technology for Deteriorating Items under Trade Credit Policy and Learning in Fuzzy," Mathematics, MDPI, vol. 11(13), pages 1-58, June.
    4. Chaudhari, Urmila & Bhadoriya, Amrita & Jani, Mrudul Y. & Sarkar, Biswajit, 2023. "A generalized payment policy for deteriorating items when demand depends on price, stock, and advertisement under carbon tax regulations," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 207(C), pages 556-574.
    5. Guchhait, Rekha & Sarkar, Biswajit, 2024. "A decision-making problem for product outsourcing with flexible production under a global supply chain management," International Journal of Production Economics, Elsevier, vol. 272(C).
    6. Sohani, Sahar & Barman, Tuli & Sarkar, Biswajit & Gunasekaran, Angappa & Pareek, Sarla, 2024. "Retail management policy through firefly algorithm under uncertainty using Dempster-Shafer theory for production firm," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    7. Lai, Xinfeng & Chen, Zhixiang & Wang, Xin & Chiu, Chun-Hung, 2023. "Risk propagation and mitigation mechanisms of disruption and trade risks for a global production network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 170(C).
    8. Rekha Guchhait & Biswajit Sarkar, 2023. "Increasing Growth of Renewable Energy: A State of Art," Energies, MDPI, vol. 16(6), pages 1-29, March.
    9. Bhattacharya, Sandipa & Sarkar, Biswajit & Sarkar, Mitali & Mukherjee, Arka, 2024. "Hospitality for prime consumers and others under the retail management," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    10. Davoudi, Zahra & Seifbarghy, Mehdi & Sarkar, Mitali & Sarkar, Biswajit, 2023. "Effect of bargaining on pricing and retailing under a green supply chain management," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    11. Basim S. O. Alsaedi & Osama Abdulaziz Alamri & Mahesh Kumar Jayaswal & Mandeep Mittal, 2023. "A Sustainable Green Supply Chain Model with Carbon Emissions for Defective Items under Learning in a Fuzzy Environment," Mathematics, MDPI, vol. 11(2), pages 1-36, January.

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