Production/Inventory Policies for a Two-Echelon System with Credit Period Incentives

  1. Gutiérrez, José M.
  2. Sicilia, Joaquín
  3. Abdul-Jalbar, Beatriz
  4. Dorta-Guerra, Roberto
  1. 1 Universidad de La Laguna
    info

    Universidad de La Laguna

    San Cristobal de La Laguna, España

    ROR https://ror.org/01r9z8p25

Journal:
Mathematics

ISSN: 2227-7390

Year of publication: 2021

Volume: 9

Issue: 15

Pages: 1725

Type: Article

DOI: 10.3390/MATH9151725 GOOGLE SCHOLAR

More publications in: Mathematics

Metrics

Cited by

  • Scopus Cited by: 0 (03-11-2023)
  • Web of Science Cited by: 0 (18-10-2023)
  • Dimensions Cited by: 0 (13-04-2023)

JCR (Journal Impact Factor)

  • Year 2021
  • Journal Impact Factor: 2.592
  • Journal Impact Factor without self cites: 2.206
  • Article influence score: 0.409
  • Best Quartile: Q1
  • Area: MATHEMATICS Quartile: Q1 Rank in area: 21/333 (Ranking edition: SCIE)

SCImago Journal Rank

  • Year 2021
  • SJR Journal Impact: 0.538
  • Best Quartile: Q2
  • Area: Computer Science (miscellaneous) Quartile: Q2 Rank in area: 100/332
  • Area: Engineering (miscellaneous) Quartile: Q2 Rank in area: 112/441
  • Area: Mathematics (miscellaneous) Quartile: Q2 Rank in area: 167/457

Scopus CiteScore

  • Year 2021
  • CiteScore of the Journal : 2.9
  • Area: Mathematics (all) Percentile: 86
  • Area: Computer Science (miscellaneous) Percentile: 62
  • Area: Engineering (miscellaneous) Percentile: 61

Journal Citation Indicator (JCI)

  • Year 2021
  • Journal Citation Indicator (JCI): 2.15
  • Best Quartile: Q1
  • Area: MATHEMATICS Quartile: Q1 Rank in area: 13/475

Dimensions

(Data updated as of 13-04-2023)
  • Total citations: 0
  • Recent citations: 0
  • Field Citation Ratio (FCR): 0.0

Abstract

Trade credit is a crucial source of capital particularly for small businesses with limited financing opportunities. Inventory models considering trade credit financing have been widely studied. However, while there is extensive research on the single-vendor single-buyer inventory model allowing delays in payments, the systems where the vendor supplies to more than one buyer have received less attention. In this paper, we analyze a two-echelon inventory system where a single vendor supplies an item to two buyers who face a constant deterministic demand. The vendor produces the items at a finite rate and offers the buyers a delay payment period. That is, the buyers can delay the payment for the purchased items until the end of the credit period. Therefore, during such a period, the buyers sell the items and use the sales revenue to earn interest. At the end of the credit period, the buyers should pay the purchasing cost to the vendor for which external funding may be necessary. It is widely accepted that, in general, centralized policies reduce the total cost of the supply chain. Therefore, we first deal with an integrated model assuming that the vendor and the buyers make decisions jointly. However, in some cases, the buyers are not willing to collaborate, and the management of the supply chain has to be carried out in a decentralized manner. Hence, we also address the problem under a non-cooperative setting. Numerical examples are presented to illustrate both models. Additionally, we perform a computational experiment to compare both strategies, and a sensitivity analysis of the parameters is also carried out. From the results, we derived that, in general, it was more profitable to follow the integrated policy excepting when the replenishment costs for the buyers were high. Finally, in order to validate the computational results, a statistical analysis is performed.

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