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Managing multi-echelon multi-item channels with trade allowances under credit period

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  • Tsao, Yu-Chung

Abstract

In this paper we consider multi-echelon multi-item channels subject to supplier's credit period and retailer's promotional effort. The retailer determines the promotional effort and the joint replenishment cycle while still maximizing profits from the perspectives of the individual and channel. We analyze two trade allowances, the promotion cost sharing and the cash discount, which are designed for coordinating the channel partner's behavior. This study provides a comparison model for each party to realize the preference of the coordinating mechanism in light of allowance ratios. Our findings show it is beneficial for both parties to have a coordinating mechanism when a promotion is conducted.

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  • Tsao, Yu-Chung, 2010. "Managing multi-echelon multi-item channels with trade allowances under credit period," International Journal of Production Economics, Elsevier, vol. 127(2), pages 226-237, October.
    • Handle: RePEc:eee:proeco:v:127:y:2010:i:2:p:226-237
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    Cited by:

    1. Ata Allah Taleizadeh & Hadi Samimi & Babak Mohammadi, 2015. "Joint replenishment policy with backordering and special sale," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1172-1198, May.
    2. Hosseini-Motlagh, Seyyed-Mahdi & Nematollahi, Mohammadreza & Johari, Maryam & Sarker, Bhaba R., 2018. "A collaborative model for coordination of monopolistic manufacturer's promotional efforts and competing duopolistic retailers' trade credits," International Journal of Production Economics, Elsevier, vol. 204(C), pages 108-122.
    3. Hosseini-Motlagh, Seyyed-Mahdi & Choi, Tsan-Ming & Johari, Maryam & Nouri-Harzvili, Mina, 2022. "A profit surplus distribution mechanism for supply chain coordination: An evolutionary game-theoretic analysis," European Journal of Operational Research, Elsevier, vol. 301(2), pages 561-575.
    4. Huang, Di & Ouyang, Lian Qun & Zhou, Hong, 2012. "Note on: Managing multi-echelon multi-item channels with trade allowances under credit period," International Journal of Production Economics, Elsevier, vol. 138(1), pages 117-124.
    5. Jen-Yen Lin & Ming-Jong Yao, 2020. "The joint replenishment problem with trade credits," Journal of Global Optimization, Springer, vol. 76(2), pages 347-382, February.
    6. Hu, Fei & Lim, Cheng-Chew & Lu, Zudi, 2013. "Coordination of supply chains with a flexible ordering policy under yield and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 146(2), pages 686-693.
    7. Gaurav Nagpal & Udayan Chanda & Himanshu Seth & Namita Ruparel, 2022. "Inventory Replenishment Policies for Two Successive Generations of Technology Products Under Permissible Delay in Payments," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 15(1), pages 1-29, January.
    8. 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.
    9. Pal, Brojeswar & Sana, Shib Sankar & Chaudhuri, Kripasindhu, 2012. "A three layer multi-item production–inventory model for multiple suppliers and retailers," Economic Modelling, Elsevier, vol. 29(6), pages 2704-2710.

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