An uncooperative ordering policy with time-varying price and learning curve for time-varying demand under trade credit Online publication date: Tue, 27-Jun-2017
by Chengfeng Wu; Qiuhong Zhao
European J. of Industrial Engineering (EJIE), Vol. 11, No. 3, 2017
Abstract: In the paper, an uncooperative replenishment schedule with variable trade credit is considered under a supplier-Stackelberg game, which considers time-varying demand with time-varying price and learning curve production cost for the finite planning horizon in a two-echelon supply chain. We focus on discussing which condition induces the retailer and supplier both to accept the trade credit mechanism to increase own total profits. The main insights obtained are the following: 1) trade credit period coefficient only take two values 1 or 0; 2) the smaller the supplier's additional capital opportunity cost, the supplier is more willing to offer trade credit; 3) the greater the difference of the retailer's cost parameters and the supplier's cost parameters, the supplier is more likely to participate in the proposed strategy. The proposed model may be applied in some tech-products in the introduction and the growth phase or short-life-cycle and time-sensitive products, and so on. [Received 9 October 2014; Revised 13 April 2015; Revised 20 March 2016; Accepted 28 February 2017]
Online publication date: Tue, 27-Jun-2017
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the European J. of Industrial Engineering (EJIE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email email@example.com