Nash and integrated solutions in a just-in-time seller–buyer supply chain with buyer's ordering cost reductions

The seller frequently offers the buyer trade credit to settle the purchase amount. From the seller's prospective, granting trade credit increases not only the opportunity cost (i.e., the interest loss on the buyer's purchase amount during the credit period) but also the default risk (i.e., the rate that the buyer will be unable to pay off his/her debt obligations). On the other hand, granting trade credit increases sales volume and revenue. Consequently, trade credit is an important strategy to increase seller's profitability. In this paper, we assume that the seller uses trade credit and number of shipments in a production run as decision variables to maximise his/her profit, while the buyer determines his/her replenishment cycle time and capital investment as decision variables to reduce his/her ordering cost and achieve his/her maximum profit. We then derive non-cooperative Nash solution and cooperative integrated solution in a just-in-time inventory system, in which granting trade credit increases not only the demand but also the opportunity cost and default risk, and the relationship between the capital investment and the ordering cost reduction is logarithmic. Then, we use a software to solve and compare these two distinct solutions. Finally, we use sensitivity analysis to obtain some managerial insights.     

Comment on ‘Optimal inventory replenishment policy for the EPQ model under trade credit derived without derivatives’

In this article, we complement the shortcoming of the inventory economic production quantity (EPQ) model developed by Huang and Huang (2008 Huang, YF and Huang, HF. 2008. Optimal Inventory Replenishment Policy for the EPQ Model Under Trade Credit Derived Without Derivatives. International Journal of Systems Science, 39: 539–546. [Taylor &; Francis Online], [Web of Science ®] , [Google Scholar]), ‘Optimal Inventory Replenishment Policy for the EPQ Model Under Trade Credit Derived Without Derivatives’, International Journal of Systems Science, 39, 539–546), and propose an arithmetic–geometric inequality method to obtain the global optimal solution without taking complex differential calculus or using tedious algebraic manipulations. Finally, we provide an economical interpretation of the theoretical result so that the reader can understand the insight of the result.     

The effect of inflation‐induced demand and trade credit on ordering policy of exponentially deteriorating and imperfect quality items

This paper develops an inventory model for exponentially deteriorating and imperfect quality items when a trade credit is offered by the supplier. As it has been seen that the changing rates of inflation do not just have an effect on the ordered quantity but they also stimulate the demand for products, so this paper considers the combined effect of inflation, deterioration, imperfect quality and ‘’ trade credit policy on the economic ordering policy using a discounted cash flow (DCF) approach. In the study, mathematical models are derived under two different circumstances, i.e., Case I: When the discount offered by the supplier with a condition of making the payment by a specified period, M₁ is accepted; and Case II: Discount is not taken and instead the payment is made by the end of the full credit period M (M > M₁). Finally, a numerical example demonstrating the applicability of the proposed model has been included.     

Single product,finite horizon,periodic review inventory model with working capital requirements and short-term debt

In this paper, we build on a single product, finite horizon, periodic review inventory management setting and include key financial aspects such as working capital constraints, payment delays and multiple sources of financing. We numerically solve for the optimal working capital target and the order-up-to level using an embedded Nelder and Mead optimization, and we perform sensitivity analysis on cash flows and short-term debt levels. Our numerical experiments show that when access to short-term debt is granted, the expected cash flows are indeed fairly insensitive to varying short-term debt premiums. However, when short-term debt becomes prohibitive or when downstream payment delays increase, the required working capital target inflates rapidly.     

信息系统在库存管理中的应用浅析

库存管理在零售业的发展中占据着重要的地位,良好的库存管理能够帮助企业提高自身竞争力,科学的库存管理离不开信息系统的支持,信息系统的引入可以更好地服务企业与客户的需求,为企业增加效益。本文以沃尔玛超市为例分析了信息系统的应用在库存管理中的重要意义,通过剖析沃尔玛公司物流管理系统的特点,我们给出了国内超市应该建立适合自身特点的信息系统,并加强与供应商进行信息共享等建议。     

Optimal policy for profit maximising in an EOQ model under non-linear holding cost and stock-dependent demand rate

In this article, we integrate a non-linear holding cost with a stock-dependent demand rate in a maximising profit per unit time model, extending several inventory models studied by other authors. After giving the mathematical formulation of the inventory system, we prove the existence and uniqueness of the optimal policy. Relying on this result, we can obtain the optimal solution using different numerical algorithms. Moreover, we provide a necessary and sufficient condition to determine whether a system is profitable, and we establish a rule to check when a given order quantity is the optimal lot size of the inventory model. The results are illustrated through numerical examples and the sensitivity of the optimal solution with respect to changes in some values of the parameters is assessed.     

Generic Expert Systems for Management Applications: The Operations Advisor and the Management Advisor

The Operations Advisor and the Management Advisor are AI-based executive decision support systems. The Operations Advisor (OA) enables managers to improve manufacturing strategy. It makes possible manufacturing policies that take full advantage of strategic interactions among capacity utilization, inventories, lead times, and unit costs.The Management Advisor (MA) values strategic business proposals (building a new plant, developing a new product, etc.). It helps managers assess the attractiveness of new business opportunities, and the impact of proposed changes in existing business policy.     

Three stage trade credit policy in a three-layer supply chain–a production-inventory model

The main purpose of this paper is to investigate the optimal replenishment lot size of supplier and optimal production rate of manufacturer under three levels of trade credit policy for supplier–manufacturer–retailer supply chain. The supplier provides a fixed credit period to settle the accounts to the manufacturer, while the manufacturer gives a fixed credit period to settle the account to the retailer and the retailer, in turn, also offers a credit period to each of its customers to settle the accounts. We assume that the supplier supplies the raw material to the manufacturer and sends back the defective raw materials to the outside supplier after completion of inspection at one lot with a sales price. The system always produces good items in the model. Also, we consider the idle times of supplier and manufacturer. Finally, numerical examples are provided to illustrate the behaviour and application of the model with graphical simulation.     

浅析汽车供应链管理中备件库存成本管理

城市化进程和国民需求变化迅速,如何通过汽车备件库存管理调整成本从而大幅减低汽车整车成本成为当今汽车供应链管理中一个至关重要的一个问题。本文通过供应链的分析,设计ABC分类和CVA分类结合的分类库存管理,同时建议在建立信息共享的基础上,用遗传算法确定安全库存、订货点和订货量,从而优化备件库存达到减低整车成本的问题。     

Optimal strategies for an inventory system with cost functions of general form

For an inventory system with a continuous compact phase state and control set, the existence of the optimal (S, s)-policy is proved and an algorithm for determination of this policy based on stochastic approximation is presented. The cost functions are monotone, continuous, and of a rather general form. Translated from Kibernetika i Sistemnyi Analiz, No. 4, pp. 106–123, July–August, 1999.     

区间型决策概念格在质量—库存管理中的应用

概念格是一种用于知识发现和数据挖掘的优良工具,通过区间型概念格模型的建立实现其在质量—库存决策中的应用。具体定义了区间型形式背景及区间型形式概念,构造了区间型决策概念格,并在同态映射的作用下,提出了决策规则的挖掘方法;进一步从企业的质量成本与库存成本间的关系出发,通过概念格可视化的结构图展示了质量—库存成本中各影响因素以及它们间的偏序关系,给出了基于概念格的决策规则提取方法,挖掘出了模型中的隐藏知识,并给出了具体的实现步骤,进而为有效制定质量管理的各项决策提供依据。     

VMI下供应链库存模型研究

分别建立了供应链在实行VMI模式前后的供应链整体、供应商及下游企业的定价、成本及利润模型,通过前后的比较分析了VMI模式的实施前期和实施一段时间后对供应链整体、供应商及其下游企业成本、利润、购买价格、订购量的影响。     

贸易信用下考虑零售商违约风险的供应链协调问题研究

本文研究延迟支付和提前支付同时存在下的供应链协调问题。考虑由一个供应商和一个零售商构成的二级供应链,市场需求随机,延迟支付下零售商会增加订购数量,但由于其违约风险的存在,供应商会降低其交付量,最终导致供应商交付量小于零售商订购量,降低供应链收益。要求零售商提前支付部分货款则可以有效避免零售商的违约问题,通过建立延迟支付和提前支付同时存在下的零售商收益模型和供应商的收益模型,给出了零售商的最优订购量决策和供应商的最优交付量决策,通过调整延迟支付期限和提前支付比例,使得二者相等,并等于供应链整体收益最大化下的生产数量,实现供应链协调。最后通过数值算例分析了相关参数的敏感性等问题。     

Optimal policies for a finite-horizon batching inventory model

This paper is concerned with finding an optimal inventory policy for the integrated replenishment-production batching model of Omar and Smith (2002). Here, a company produces a single finished product which requires a single raw material and the objective is to minimise the total inventory costs over a finite planning horizon. Earlier work in the literature considered models with linear demand rate function of the finished product. This work proposes a general methodology for finding an optimal inventory policy for general demand rate functions. The proposed methodology is adapted from the recent work of Benkherouf and Gilding (2009).