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Three level supply chain model with variable demand rate under partial trade credit policy

Author

Listed:
  • Narayan Singh
  • Bindu Vaish
  • S.R. Singh

Abstract

In this study, we generalise a partial trade credit policy in a three echelon supply chain system involving a single manufacturer, a single distributor and a single retailer. Here the manufacturer provides a delay period to the distributor and the distributer offers less trade credit period to the retailers, and the retailer also offers the partial trade credit to his customers. Demand and production rate are considered time dependent. This article develops an integrated inventory model to determine the minimum system cost, the optimal cycle time, optimal order quantity and optimal payment time. Suitably selected numerical examples highlight the obtained results. Sensitivity analysis of the optimal solution with respect to major parameters of the system has been carried out and the implications are discussed.

Suggested Citation

  • Narayan Singh & Bindu Vaish & S.R. Singh, 2015. "Three level supply chain model with variable demand rate under partial trade credit policy," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 21(4), pages 479-503.
    • Handle: RePEc:ids:ijsoma:v:21:y:2015:i:4:p:479-503
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