Original scientific paper
Economic order quantity under retailer partial trade credit in two-echelon supply chain
Yung-Fu Huang
; Department of Marketing and Logistics Management, Chaoyang University of Technology, Taichung, Taiwan, REPUBLIC OF CHINA
Yu-Cheng Tu
; Department of Marketing and Logistics Management, Chaoyang University of Technology, Taichung, Taiwan, REPUBLIC OF CHINA
Hung-Fu Huang
; Department of Digital Content Design, Kao Fong College, Pingtung, Taiwan, REPUBLIC OF CHINA
Yale Wang
; Department of Insurance, Chaoyang University of Technology, Taichung, Taiwan, REPUBLIC OF CHINA
Abstract
In this paper, we want to investigate the retailer’s inventory policy when the retailer maintains a powerful position in two-echelon supply chain. That is, we assumed that the retailer can obtain the full trade credit offered by
the supplier yet the retailer just offers the partial trade credit to their customers under two-level trade credit situation. Then, we investigate the retailer’s inventory system as a cost minimization problem to determine the retailer’s optimal inventory policy in two-echelon supply chain. Finally, numerical examples are given to illustrate the results and to obtain managerial insights.
Keywords
inventory; EOQ; two-level trade credit; two-echelon supply chain
Hrčak ID:
185922
URI
Publication date:
27.11.2009.
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