Title: An uncooperative ordering policy with time-varying price and learning curve for time-varying demand under trade credit

Authors: Chengfeng Wu; Qiuhong Zhao

Addresses: School of Economics and Management, Qingdao University of Science & Technology, 99 Songling Rd. Laoshan Dist., Qingdao, China ' School of Economics and Management, Beihang University, 37 Xueyuan Rd., Haidian Dist., Beijing, China

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]

Keywords: linear-trend demand; learning curve; trade credit period coefficient; time-varying price; supplier-Stackelberg game.

DOI: 10.1504/EJIE.2017.084881

European Journal of Industrial Engineering, 2017 Vol.11 No.3, pp.380 - 402

Available online: 27 Jun 2017 *

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