Optimal payment time for a retailer under permitted delay of payment by the wholesaler

Jamal, A. M. M.; Sarker, Bhaba R.; Wang, Shaojun

doi:10.1016/s0925-5273(99)00108-5

Cited by 204 publications

(69 citation statements)

References 19 publications

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“…Next, we review each stream in turn. The intertwinement of financial and operational decisions has recently received an increasing attention in the literature (Wuttke, Blome, Foerstl & Henke 2013, Protopappa-Sieke & Seifert 2010, Gupta & Dutta 2011, Pfohl & Gomm 2009, Hofmann 2005, Jamal et al 2000 where the main focus lies on how financial restrictions and decisions influence the operational performance of a supply chain. and Wuttke, Blome, Foerstl & Henke (2013) are both based on multiple case studies providing empirical insights into the supply chain and finance interface.…”

Section: Literature Reviewmentioning

confidence: 99%

Supply chain finance: Optimal introduction and adoption decisions

Wuttke

Blome

Heese

et al. 2016

International Journal of Production Economics

182

150

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Section: Literature Reviewmentioning

confidence: 99%

Supply chain finance: Optimal introduction and adoption decisions

Wuttke

Blome

Heese

et al. 2016

International Journal of Production Economics

182

150

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“…Jamal et al (2000) assumed that the buyer can pay the vendor either at time some time M to avoid the interest payment or afterwards with interest on the unpaid balance due at M. Typically, the buyer may not pay fully the wholesaler by time M for lack of cash. On the other hand, his cost will be higher the longer the buyer waits beyond M. Therefore, the buyer will gradually pay the wholesaler until the payment is complete.…”

Section: Permissible Delay In Paymentsmentioning

confidence: 99%

“…Since the selling price is higher than the unit cost, and interest earned during the credit period M may also be used to payoff the vendor, the payment will be complete at time P before the end of each cycle T (i.e., M ≤ P ≤ T). Jamal et al (2000) modelled the vendor-buyer system as a cost minimization problem to determine the optimal payment time P* under various system parameters.…”

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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“…Shah and Shah (1998) developed a probabilistic inventory model when delay in payment is permissible. Jamal et al (2000) and Sarker et al (2000) computed interest earned on the selling price and concluded that the retailer should settle his account relatively sooner as the unit-selling price increases relative to the unit purchase cost. Chang and Dye (2001) extended the model of Jamal et al (1997) for time dependent deterioration.…”

Section: Introductionmentioning

confidence: 99%

EOQ in fuzzy environment and trade credit

Shah¹,

Pareek²,

Sangal³

2012

ijiec

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Now-a-days, the offer of credit period to the retailer for settling the account for the units purchased by the supplier is considered to be the most beneficial policy. In this article, an attempt is made to formulate an economic order quantity model under fuzzy environment where delay in payment for the retailer is permissible. The demand rate, ordering cost and selling price per item are taken as triangular fuzzy numbers. The α-cut representation method is used to calculate the optimum cycle time and total optimum cost. The optimum cycle time and total optimum cost in fuzzy sense is de-fuzzified using the centre of gravity method.

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Optimal payment time for a retailer under permitted delay of payment by the wholesaler

Cited by 204 publications

References 19 publications

Supply chain finance: Optimal introduction and adoption decisions

Supply chain finance: Optimal introduction and adoption decisions

Quantitative Models for Centralised Supply Chain Coordination

EOQ in fuzzy environment and trade credit

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