IDEAS home Printed from https://ideas.repec.org/a/ids/ijbpsc/v7y2015i1p71-91.html
   My bibliography  Save this article

Modelling and analysis of coordination of a three-level supply chain with use of price discount along with delay in payment

Author

Listed:
  • C.K. Ambilikumar
  • M. Bhasi
  • G. Madhu

Abstract

Coordination improves the performance of a supply chain system. Two popular coordination mechanisms are 'price discount' and 'delay in payment'. The effect of these two mechanisms individually on supply chain performance has already been reported in literature. In this work, the two mechanisms 'price discount' and 'delay in payment' are used simultaneously to coordinate a three-level supply chain system. The problem has been modelled mathematically and solved. The result obtained in the case is compared with that obtained when using 'price discount' alone. It is seen that use of 'price discount' along with 'delay in payment' enhances the supply chain profit significantly compared to the case of price discounts alone.

Suggested Citation

  • C.K. Ambilikumar & M. Bhasi & G. Madhu, 2015. "Modelling and analysis of coordination of a three-level supply chain with use of price discount along with delay in payment," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 7(1), pages 71-91.
    • Handle: RePEc:ids:ijbpsc:v:7:y:2015:i:1:p:71-91
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=68136
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Purushottam L. Meena & S.P. Sarmah & Santanu Sinha, 2012. "Measuring satisfaction in buyer-supplier relationship from suppliers perspective," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 4(1), pages 60-74.
    2. Patrick Lallement & Arezki Aït-Seddik, 2012. "Queuing Petri net modelling and simulation of logistic activities for operational decisions," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 4(1), pages 16-39.
    3. Kelle, Peter & Miller, Pamela A. & Akbulut, Asli Y., 2007. "Coordinating ordering/shipment policy for buyer and supplier: Numerical and empirical analysis of influencing factors," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 100-110, July.
    4. Shin, Hojung & Benton, W.C., 2007. "A quantity discount approach to supply chain coordination," European Journal of Operational Research, Elsevier, vol. 180(2), pages 601-616, July.
    5. Yao, Z. & Leung, Stephen C.H. & Lai, K.K., 2008. "Manufacturer's revenue-sharing contract and retail competition," European Journal of Operational Research, Elsevier, vol. 186(2), pages 637-651, April.
    6. Hsieh, Chung-Chi & Liu, Yu-Te & Wang, Wei-Ming, 2010. "Coordinating ordering and pricing decisions in a two-stage distribution system with price-sensitive demand through short-term discounting," European Journal of Operational Research, Elsevier, vol. 207(1), pages 142-151, November.
    7. Fernando Bernstein & Fangruo Chen & Awi Federgruen, 2006. "Coordinating Supply Chains with Simple Pricing Schemes: The Role of Vendor-Managed Inventories," Management Science, INFORMS, vol. 52(10), pages 1483-1492, October.
    8. Esmaeili, M. & Zeephongsekul, P., 2010. "Seller-buyer models of supply chain management with an asymmetric information structure," International Journal of Production Economics, Elsevier, vol. 123(1), pages 146-154, January.
    9. Chen, Liang-Hsuan & Kang, Fu-Sen, 2007. "Integrated vendor-buyer cooperative inventory models with variant permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 183(2), pages 658-673, December.
    10. Ryu, Kwangyeol & Yücesan, Enver, 2010. "A fuzzy newsvendor approach to supply chain coordination," European Journal of Operational Research, Elsevier, vol. 200(2), pages 421-438, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chaharsooghi, S. Kamal & Heydari, Jafar, 2010. "Supply chain coordination for the joint determination of order quantity and reorder point using credit option," European Journal of Operational Research, Elsevier, vol. 204(1), pages 86-95, July.
    2. Konur, Dinçer & Geunes, Joseph, 2016. "Supplier wholesale pricing for a retail chain: Implications of centralized vs. decentralized retailing and procurement under quantity competition," Omega, Elsevier, vol. 65(C), pages 98-110.
    3. Geng, Wei & Qiu, Minmin & Zhao, Xiaobo, 2010. "An inventory system with single distributor and multiple retailers: Operating scenarios and performance comparison," International Journal of Production Economics, Elsevier, vol. 128(1), pages 434-444, November.
    4. Choi, Tsan-Ming & Sethi, Suresh, 2010. "Innovative quick response programs: A review," International Journal of Production Economics, Elsevier, vol. 127(1), pages 1-12, September.
    5. Saha, Subrata, 2013. "Supply chain coordination through rebate induced contracts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 50(C), pages 120-137.
    6. Govindan, Kannan & Malomfalean, Andreea, 2019. "A framework for evaluation of supply chain coordination by contracts under O2O environment," International Journal of Production Economics, Elsevier, vol. 215(C), pages 11-23.
    7. Anna Nagurney & Dong Li, 2014. "Equilibria and dynamics of supply chain network competition with information asymmetry in quality and minimum quality standards," Computational Management Science, Springer, vol. 11(3), pages 285-315, July.
    8. Yang, Jian & Qi, Xiangtong, 2009. "On the design of coordinating contracts," International Journal of Production Economics, Elsevier, vol. 122(2), pages 581-594, December.
    9. Z X Chen & B R Sarker, 2010. "Multi-vendor integrated procurement-production system under shared transportation and just-in-time delivery system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(11), pages 1654-1666, November.
    10. Xin Yun & Hao Liu & Yi Li & Kin Keung Lai, 2023. "Contract design under asymmetric demand information for sustainable supply chain practices," Annals of Operations Research, Springer, vol. 324(1), pages 1429-1459, May.
    11. Taleizadeh, Ata Allah & Pentico, David W. & Saeed Jabalameli, Mohammad & Aryanezhad, Mirbahador, 2013. "An EOQ model with partial delayed payment and partial backordering," Omega, Elsevier, vol. 41(2), pages 354-368.
    12. Ni Du & Qinglan Han, 2018. "Pricing and Service Quality Guarantee Decisions in Logistics Service Supply Chain with Fairness Concern," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(05), pages 1-41, October.
    13. Kumar, Patanjal & Baraiya, Rajendra & Das, Debashree & Jakhar, Suresh Kumar & Xu, Lei & Mangla, Sachin Kumar, 2021. "Social responsibility and cost-learning in dyadic supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    14. Hu, Qiying & Wei, Yihua & Xia, Yusen, 2010. "Revenue management for a supply chain with two streams of customers," European Journal of Operational Research, Elsevier, vol. 200(2), pages 582-598, January.
    15. Arbabian, Mohammad E. & Wagner, Michael R., 2020. "The impact of 3D printing on manufacturer–retailer supply chains," European Journal of Operational Research, Elsevier, vol. 285(2), pages 538-552.
    16. Becker-Peth, Michael & Thonemann, Ulrich W., 2016. "Reference points in revenue sharing contracts—How to design optimal supply chain contracts," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1033-1049.
    17. Tinglong Zhang & Xiongfei Guo & Jin Hu & Ningning Wang, 2020. "Cooperative advertising models under different channel power structure," Annals of Operations Research, Springer, vol. 291(1), pages 1103-1125, August.
    18. Dan Wu & Yuxiang Yang, 2020. "The Low-Carbon Supply Chain Coordination Problem with Consumers’ Low-Carbon Preference," Sustainability, MDPI, vol. 12(9), pages 1-15, April.
    19. Wong, Christina W.Y. & Lai, Kee-hung & Ngai, E.W.T., 2009. "The role of supplier operational adaptation on the performance of IT-enabled transport logistics under environmental uncertainty," International Journal of Production Economics, Elsevier, vol. 122(1), pages 47-55, November.
    20. Juanjuan Qin & Kun Wang & Ziping Wang & Liangjie Xia, 2020. "Revenue sharing contracts for horizontal capacity sharing under competition," Annals of Operations Research, Springer, vol. 291(1), pages 731-760, August.

    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:ids:ijbpsc:v:7:y:2015:i:1:p:71-91. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=341 .

    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.