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http://dx.doi.org/10.17703/JCCT.2022.8.5.577

Sensitivity analysis of RPLS inventory model with price dependent demand linearly under order-size-dependent delay in payments in a two-stage supply chain  

Shinn, Seong-Whan (Dept. of Advanced Materials & Chemical Engineering, Halla Univ)
Publication Information
The Journal of the Convergence on Culture Technology / v.8, no.5, 2022 , pp. 577-582 More about this Journal
Abstract
Credit transactions are used as a means of price discrimination from competitors in order for suppliers to increase customer demand. In particular, in the case of a two-stage supply chain consisting of a supplier, a retailer, and a customer, the deferral of payment for goods allowed by the supplier is a means of reducing the inventory investment cost of the retailer. Retailers have the opportunity to discount the selling price while anticipating an increase in end-customer demand through the reduction of the inventory investment cost. In view of the fact that such trade credit is provided for the purpose of increasing demand as a means of discrimination from competitors, it may be more general that the credit transaction period is allowed flexibly according to the transaction volume. In particular, in the case of deteriorating products, the credit transaction period given according to the order volume is a factor that increases the order volume of the retailer, but product deterioration can be a limiting factor in the increase in the order volume. The deterioration rate actually plays an important role in determining the inventory policy of the retailer. Therefore, in this paper, the effect of such deterioration rate on the inventory policy of retailer is analyzed.
Keywords
Credit Period; Linear Demand Function; Deterioration; Price; Lot-size;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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