This paper considers a two-level supply chain consisting of a manufacturer and two buyers. The manufacturer produces one type of products at a finite rate and replenishes them to the buyers. Each buyer’s demand is sensitive to his selling price and the backorder is allowed at the buyers. Moreover, it is assumed that the buyers delay paying for goods to the manufacturer and two types of delay in...

For the two-echelon supply chain with stable market demand, by taking the supplier’s capital constraint into consideration, we establish a conditional and partial trade credit model, which actually is a Stackelberg model with the supplier being a leader in the game. By analyzing two parties’ optimal decisions in the game, we provide the supplier with a threshold for setting the model. The model...

the letter of credit as a method of smoothing international payment is a conditional security and obligation to pay the customer bank (issuing bank) to seller (applicant). for this purpose, the letters of credit may be considered as the most usual method of payment of goods price in international trade. the classic form of letters of credit is the commercial letters of credit whose financial ob...

The paper investigates a two-echelon production-delivery supply chain model for products with stochastic demand and backorder-lost sales mixture under trade-credit financing. manufacturer delivers the retailer’s order quantity in number of equal-sized shipments. replenishment lead-time is such that it can be crashed to minimum duration at an additional cost treated as investment. Shortages inve...

Large retail platform has begun to provide trade credit the capital-constrained and start-up third party retailer (3PR). Most of 3PRs face uncertain demands with few historical data, which makes it difficult for evaluate rationality 3PR’s lot-sizing decision design contracts. In addition, initial budget is unknown platform, further increases risk credit. There- fore, this paper considers a two-...

Traditional supply chain inventory modes with trade credit usually only assumed that the up-stream suppliers offered the down-stream retailers a fixed credit period. However, in practice the retailers will also provide a credit period to customers to promote the market competition. In this paper, we formulate an optimal supply chain inventory model under two levels of trade credit policy with d...

In practice, the supplier often offers the retailers a trade credit period M and the retailer in turn provides a trade credit period N to her/his customer to stimulate sales and reduce inventory. From the retailer’s perspective, granting trade credit not only increases sales and revenue but also increases opportunity cost (i.e., the capital opportunity loss during credit period) and defau...

A deterministic inventory model with two levels of storage (own warehouse and rented warehouse) with non-instantaneous deteriorating items is studied. The supplier offers the retailer a trade credit period to settle the amount. Different scenarios based on the deterioration and the trade credit period have been considered. In this article, we have framed two models considering single warehouse ...

The COVID-19 pandemic has affected all sectors of the world’s economy and society. Firms need to have disaster recovery business sustainability plans be able generate profits in order develop. Trade credit may a good way for firms free up cash flow finance short-term growth. Extensions payment will provide with low-cost loans under guarantee scheme. Implementation hybrid trade activities been s...