Unreliable EPQ model with variable demand under two-tier credit financing

Mandal, Anindya; Pal, Brojeswar; Chaudhuri, Kripasindhu

doi:10.1080/21681015.2020.1815877

Cited by 14 publications

(11 citation statements)

References 34 publications

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“…Zhang et al [54] investigated an EOQ model under two-level credit financing where the retailer receives a partial trade credit from the supplier, and offers a full or partial trade credit to the good or bad credit customers. Mandal and Pal [20] formulated an imperfect production based inventory model with product advertisement and credit period sensitive demand under two-stage trade credit policy. They derived optimal strategies on selling price, advertisement frequency and offered credit time to achieve maximum integrated profit.…”

Section: Literature Reviewmentioning

confidence: 99%

“…(v) Manufacturer provides a fixed time period M to the retailer to pay out; if the payment is not done within the permissible time period, the interest is charged at a rate I c for due payment of the remaining stock items of the retailer. In the retailer's turn, the retailer also provides a fixed credit time period N to the end customer and earns interest at a rate I e on the revenue collected from the sold items within the offered credit period by the manufacturer [20]. (vii) The unit production cost is assumed C(Q) = C m + F C Q , F C > 0, where C m is the material cost per unit item and F C is the fixed cost which includes ordering cost, labor cost, energy cost, and maintenance cost, etc.…”

Section: Assumptionsmentioning

confidence: 99%

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Two-phase deteriorated supply chain model with variable demand and imperfect production process under two-stage credit financing

Pal

Mandal²,

Sana

2021

RAIRO-Oper. Res.

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In this article, an imperfect production inventory model consisting of a manufacturer and a retailer with quality improvement effort and the promotional effort sensitive demand pattern is investigated under a two-tier credit policy. We study the model for deteriorating items where the deterioration occurs at different rates in the manufacturer’s and the retailer’s level considering a fixed lifetime of the product. Discussing the six possible cases of credit policy analytically, we analyze the behavior of the model under an integrated system concerning production lot-size, quality effort and promotional effort such that the integrated average profit is maximum. To obtain the optimal solutions of the model, we design an operative solution algorithm. A numerical example is provided to test feasibility of the model, and the effect of the variation of the key parameters is also studied. The outcomes of this proposed model show that the manufacturer and the retailer have to be more careful about their offered credit periods in aspect of the profit. It is observed that the integrated profit is maximum when both credit periods provided by the manufacturer and the retailer belong to the manufacturer’s cycle. Moreover, we identify that the extended product lifetime does not meet with higher profit all times. This study directs that quality effort and promotional effort stimulate the market demand while it is not always economically profitable for the supply chain.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Assumptionsmentioning

confidence: 99%

Two-phase deteriorated supply chain model with variable demand and imperfect production process under two-stage credit financing

Pal

Mandal²,

Sana

2021

RAIRO-Oper. Res.

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“…Mandal et al [5] formulated an unreliable production system along with two-level credit policies. Bhunia et al [6] considered partial backlogging incidents under the permissible delay of payment scenario.…”

Section: Literature Surveymentioning

confidence: 99%

“…The profit of the integrated system is determined by both members' profit functions. If 1 , 2 3 represent profit functions for Case (a), Case (b), and case (c) respectively, then they are 2), ( 3), ( 4), (5), and (6) we get an expression of profit functions for Case (a):…”

Section: Solution Proceduresmentioning

confidence: 99%

Pricing Policy in an Integrated Two-echelon Supply Chain under Permissible Delay of Payment

Adhikari¹

2021

IJRAT

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“…Tiwary et al (2018) introduced two level partial trade credit policy in a three-echelon supply chain associated with perishable items. Mandal et al (2020) introduces reliability in a production inventory model with two tier credit policy. An inventory model with two stage deterioration under the atmosphere of permissible delay option was formulated by Pal et al (2021).…”

Section: Introductionmentioning

confidence: 99%

Determination of Retailer’s Optimal Policy in a Price-Sensitive Inventory Model Faciliating Two Types of Payment Scheme for the Customers

Adhikari¹

2022

Int. J. Eng. Tech. Mgmt. Res.

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This article investigates the effect of implementation of two types of payment scheme to the customer by a retailer in an inventory system. Our study is to determine optimal cycle time and selling price of a commodity when two types of payment scheme namely immediate payment scheme as well as trade credit policy are available to the customer. In reality, two trends of payment scheme are available in business world. Some people want to pay immediately after purchase while some favors some time delay in payment. From retailer’s point of view, in many situations, retailer faces scarcity of capital to start his business. Now- a- day bank loan is available to the retailer at ease. We formulate a mathematical model keeping in mind all these things. Two tier credit policies have been considered. First of all, bank offers a delay period to repay loan. Secondly, retailer also offers a credit period to customer. Different cases possible owing to variable duration of credit periods. Our ultimate goal is to optimize retailer’s profit for different cases arisen in the model. A numerical example has been posed and discussed in support of the model.

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Unreliable EPQ model with variable demand under two-tier credit financing

Cited by 14 publications

References 34 publications

Two-phase deteriorated supply chain model with variable demand and imperfect production process under two-stage credit financing

Two-phase deteriorated supply chain model with variable demand and imperfect production process under two-stage credit financing

Pricing Policy in an Integrated Two-echelon Supply Chain under Permissible Delay of Payment

Determination of Retailer’s Optimal Policy in a Price-Sensitive Inventory Model Faciliating Two Types of Payment Scheme for the Customers

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