Coordinating a two-level supply chain with delay in payments and profit sharing

Jaber, Mohamad Y.; Osman, Ibrahim H.

doi:10.1016/j.cie.2005.08.004

Cited by 210 publications

(62 citation statements)

References 31 publications

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“…Kebijakan tersebut merupakan salah satu cara koordinasi dengan memperbolehkan pelanggan menunda pembayaran kepada vendor selama periode tertentu tanpa beban bunga [7]. Kebijakan tersebut juga akan menarik pembeli (pemain satu level dibawahnya) untuk membeli pada lot yang lebih besar dari jumlah pemesanan ekonomis mereka.…”

Section: Pendahuluanunclassified

“…Dalam perusahaan yang menggunakan sistem dual channel, kebijakan delay in payment dapat menjadi kompensasi atau nilai lebih untuk channel tradisional yang pangsa pasarnya dapat berpindah / ter-kanibalisme oleh direct channel [14]. Beberapa penelitian tentang delay in payment yang berfokus pada fungsi tujuan menentukan lot size optimal telah dibahas oleh Chung, et al [15], Nurshanti [14], Glock [3], dan Jaber and Osman [7]. Aljazzar, et al [8] mencoba mengembangkan model delay in payment satu eselon dengan fungsi tujuan panjang waktu.…”

Section: Pendahuluanunclassified

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Integrated Supply Chain Contract Model With Drop-Shipper Players

Ibrahim¹

2018

JTI

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In this paper, we developed model integrated supply chain model with drop-shipper players. The aim of the study is to integrate players in the supply chain system that one of its players is a drop shipper. This coordination model considers the policy of late payment and prosecution for delivery of goods. Previous, The author has described the supply chain system in detail. The experiments were conducted into different case scenarios, where each scenario would represent the actual system that occurred. Then also conducted sensitivity analysis on some predicted variables significantly influence the total cost of the supply chain. From the results obtained, it can be concluded that coordination with consideration of delay in payment and penalty contract for drop ship has successfully integrated the players in the supply chain system under study. This can be proved by the lower total cost of the supply chain when it is integrated with that consideration.

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Section: Pendahuluanunclassified

Integrated Supply Chain Contract Model With Drop-Shipper Players

Ibrahim¹

2018

JTI

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“…Dye and Ouyang [18,19] employed particle swarm optimization to study the optimal pricing and inventory decision of the retailer under deferred payment. Jaber and Osman [20] discussed the coordinated management of supply chain inventory, with deferred payment as the decision variable shared by the buyer and the seller. Yang and Wee [21] established a supply chain inventory coordination model of perishable supply chain with limited replenishment rate and proved that deferred payment is a win-win strategy to achieve profit sharing.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Decision of Deferred Payment Supply Chain considering Bilateral Risk-Aversion Degree

Liu

Futou

2018

Mathematical Problems in Engineering

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This paper aims to fill up the gap that the previous research has never explored, the deferred payment supply chain with a risk-averse supplier. To this end, the conditional value-at-risk (CVaR) was adopted as a criterion to measure the influence of retailer's deferred payment on supply chain performance. According to this criterion, the retailer's optimal order quantity and the supplier's optimal wholesale price per unit product were investigated under decentralized decision-making. Then, the existence of a unique optimal strategy was discussed for risk-averse supplier and retailer, and the values of risk-averse, initial capital, and wholesale price were calculated in detail. Finally, the theoretical results were testified through a numerical example. It is concluded that retailer's optimal order quantity is negatively correlated with the wholesale price, initial capital, and degree of risk aversion, so that the retailer can benefit through proper risk aversion; the supplier's expected profit decreases with the increase in the degree of risk aversion, yet the optimal wholesale price is determined by the degree of risk aversion of supplier and retailer. The research findings shed valuable new light on how to manage a supply chain involving risk-averse supplier and retailer.

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“…Chen & Kang (2007) considered a similar model to that of Jaber & Osman (2006), where they investigated their model for predetermined and extended periods of delay in payments. However, and unlike the work of Jaber & Osman (2006), Chen & Kang (2007) have not treated the length of delay in payment as a decision variable. Sheen & Tsao (2007) consider vendor-buyer channels subject to trade credit and quantity discounts for freight cost.…”

Section: Permissible Delay In Paymentsmentioning

confidence: 99%

Quantitative Models for Centralised Supply Chain Coordination

Jaber¹,

Zolfaghari²

2008

Supply Chain

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IntroductionA supply chain is defined as a network of facilities and distribution options that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Managing such functions along the whole chain; that is, from the supplier's supplier to the customer's customer; requires a great deal of coordination among the players in the chain. The effectiveness of coordination in supply chains could be measured in two ways: reduction in total supply chain costs and enhanced coordination services provided to the end customer ⎯ and to all players in the supply chain. Inventory is the highest cost in a supply chain accounting for almost 50% of the total logistics costs. Integrating order quantities models among players in a supply chain is a method of achieving coordination. For coordination to be successful, incentive schemes must be adopted. The literature on supply chain coordination have proposed several incentive schemes for coordination; such as quantity discounts, permissible delay in payments, price discounts, volume discount, common replenishment periods. The available quantitative models in supply chain coordination consider up to four levels (i.e., tier-1 supplier, tier-2 supplier, manufacturer, and buyer), with the majority of studies investigating a two-level supply chain with varying assumptions (e.g., multiple buyers, stochastic demand, imperfect quality, etc). Coordination decisions in supply chains are either centralized or decentralized decision-making processes. A centralized decision making process assumes a unique decision-maker (a team) managing the whole supply chain with an objective to minimize (maximize) the total supply chain cost (profit), whereas a decentralized decision-making process involves multiple decision-makers who have conflicting objectives. This chapter will review the literature for quantitative models for centralised supply chain coordination that emphasize inventory management for the period from 1990 to end of 2007. In this chapter, we will classify the models on the basis of incentive schemes, supply chain levels, and assumptions. This chapter will also provide a map indicative of the limitations of the available studies and steer readers to future directions along this line of research. Centralised supply chain coordinationA typical supply chain consists of multistage business entities where raw materials and components are pushed forward from the supplier's supplier to the customer's customer. During this forward push, value is gradually added at each entity in the supply chain transforming raw materials and components to take their final form as finished products at the customer's end, the buyer. These business entities may be owned by the same organization or by several organizations. Goyal & Gupta (1989) suggested that coordination could be achieved by integrating lotsizing models. However, coordinating orders among players in a supply chain might...

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Coordinating a two-level supply chain with delay in payments and profit sharing

Cited by 210 publications

References 31 publications

Integrated Supply Chain Contract Model With Drop-Shipper Players

Integrated Supply Chain Contract Model With Drop-Shipper Players

Optimal Decision of Deferred Payment Supply Chain considering Bilateral Risk-Aversion Degree

Quantitative Models for Centralised Supply Chain Coordination

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