Journal article
Coordination of two-echelon supply chains using wholesale price discount and credit option
International journal of production economics, v 143(2), pp 327-334
01 Jun 2013
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper, studies the coordination of two-echelon supply chains using a credit (delayed) payment option and/or a wholesale price discount offer. We develop models for optimizing individual members', as well as supply chain's objectives. These models lead to the determination of the retail price and the order quantity for the buyer, as well as the production batch size, wholesale discount and/or the credit period offer for the supplier, under five different scenarios. Our analysis indicates the superiority of a coordinating policy that incorporates both a quantity discount, as well as a credit payment option. With equitable profit sharing, such a policy can be beneficial for both the parties towards increasing total supply chain profitability. (C) 2012 Elsevier B.V. All rights reserved.
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Details
- Title
- Coordination of two-echelon supply chains using wholesale price discount and credit option
- Creators
- Ruo Du - Drexel UniversityAvijit Banerjee - Drexel UniversitySeung-Lae Kim - Drexel University
- Publication Details
- International journal of production economics, v 143(2), pp 327-334
- Publisher
- Elsevier
- Number of pages
- 8
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems)
- Web of Science ID
- WOS:000320287100013
- Scopus ID
- 2-s2.0-84877584940
- Other Identifier
- 991019168268404721
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InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Engineering, Industrial
- Engineering, Manufacturing
- Operations Research & Management Science