Abstract
In practice, the supplier usually offers the retailer the permissible delay in payment, and the retailer in turn provides the trade credit period to his/her customers. In this paper, we assume that (1) the supplier asks the retailer to pay some cash when the order is delivered and then offer a short-term interest-free loan on the remaining purchasing cost. (2) The retailer offers a short-term interest-free loan to the customer. We then establish an appropriate inventory model for the perishable product to find the optimal cycle time and the fraction of no shortages such that the total profit is maximized. Finally, we present several mathematical models for different cases to illustrate the managerial insight.
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Chan, YL., Hsu, SM., Liao, MH. (2021). An Inventory Model for Perishable Items Under Upstream and Downstream Trade Credit. In: Barolli, L., Poniszewska-Maranda, A., Park, H. (eds) Innovative Mobile and Internet Services in Ubiquitous Computing . IMIS 2020. Advances in Intelligent Systems and Computing, vol 1195. Springer, Cham. https://doi.org/10.1007/978-3-030-50399-4_54
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DOI: https://doi.org/10.1007/978-3-030-50399-4_54
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