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Supply chain management for two-level trade credit financing with selling price dependent demand under the effect of preservation technology

Author

Listed:
  • Aditya Shastri
  • S.R. Singh
  • Dharmendra Yadav
  • Shalley Gupta

Abstract

The present paper investigated the economic order quantity inventory model for a retailer under two-levels of trade credit to reflect the supply chain management (SCM). Here, it is assumed that the selling items are perishable such as fruits, fresh fishes, gasoline, photographic films, etc. It is assumed that potential worth of items can be increased by using preservation technology and the retailer's trade credit period (M) offered by the supplier is longer than the customer's trade credit period (N) offered by the retailer. It also assumed that the demand of the customer depends on the selling price of items. Theorems are developed to determine retailer's optimal ordering policies and numerical examples are given to illustrate these theorems. It also observed that Goyal (1985), Shah (1993), Chung (1998) and Huang (2003) are the particular case of our proposed model. In addition, some managerial insights from the numerical examples are also concluded.

Suggested Citation

  • Aditya Shastri & S.R. Singh & Dharmendra Yadav & Shalley Gupta, 2014. "Supply chain management for two-level trade credit financing with selling price dependent demand under the effect of preservation technology," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 7(6), pages 695-718.
    • Handle: RePEc:ids:ijpman:v:7:y:2014:i:6:p:695-718
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    Citations

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    Cited by:

    1. Jitendra Kaushik, 2024. "An inventory model for deteriorating items towards trapezoidal type demand with preservation technology," OPSEARCH, Springer;Operational Research Society of India, vol. 61(4), pages 1681-1712, December.
    2. Gudivada Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "Pythagorean Fuzzy Storage Capacity with Controllable Carbon Emission Incorporating Green Technology Investment on a Two-Depository System," Energies, MDPI, vol. 15(23), pages 1-34, November.
    3. Vandana & A. K. Das, 2022. "Two-warehouse supply chain model under preservation technology and stochastic demand with shortages," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1587-1612, December.
    4. Münch, Christopher & Marx, Emanuel, 2022. "Supply ecosystems and the concept of resilience: A literature review," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 39-66, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

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