Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 114, Issue -, Pages 270-291Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2018.04.008
Keywords
Supply chain coordination; Bi-level credit period; Time value of money; Periodic review replenishment; Price-credit dependent demand
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A bi-level credit period coordination scheme is proposed for a supplier-retailer supply chain with a periodic review replenishment policy and price-credit dependent demand. The credit period offered by the retailer to its customers is a promotional effort to induce customer demand and gain market share. We model the problem under decentralized, centralized, and coordinated structures. Through the incentive scheme, the supplier seeks to increase the retailer's credit period by offering the retailer a credit period. Our results suggest that coordinating the inventory, pricing, and credit financing can improve the overall chain and individual member profitability.
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