IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-3-031-24907-5_78.html
   My bibliography  Save this book chapter

Impact Analysis of Extended Payment Terms in Food Supply Chains During a Demand Shortfall

In: Operations Research Proceedings 2022

Author

Listed:
  • Alexander Zienau

    (4flow AG
    Karlsruhe Institute of Technology, Institute for Industrial Production)

  • Mahdi Alazzeh

    (4flow AG)

  • Ole Hansen

    (4flow AG)

  • Christina Imdahl

    (Eindhoven University of Technology)

  • Marcus Wiens

    (Technical University Bergakademie Freiberg)

  • Frank Schultmann

    (Karlsruhe Institute of Technology, Institute for Industrial Production)

Abstract

The current pandemic has disrupted many supply chains, among them food supply chains, and their physical and financial flows. Therefore, companies with high bargaining power may extend their payment terms to downstream suppliers as a reaction to decreased financial cash flow. We model a stylized three-stage food supply chain and use simulation to analyze the effects of a demand shortfall. We then investigate the effects of payment term extensions by different companies. We find that although extending payment terms can be beneficial for a single company in the short run, it will harm the supply chain in the long-run and conclude that incentives should be put into place to motivate companies accordingly.

Suggested Citation

  • Alexander Zienau & Mahdi Alazzeh & Ole Hansen & Christina Imdahl & Marcus Wiens & Frank Schultmann, 2023. "Impact Analysis of Extended Payment Terms in Food Supply Chains During a Demand Shortfall," Lecture Notes in Operations Research, in: Oliver Grothe & Stefan Nickel & Steffen Rebennack & Oliver Stein (ed.), Operations Research Proceedings 2022, chapter 0, pages 653-660, Springer.
    • Handle: RePEc:spr:lnopch:978-3-031-24907-5_78
    DOI: 10.1007/978-3-031-24907-5_78
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnopch:978-3-031-24907-5_78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.