The Research On The Permissible Delay In Payments And Risk Control Strategy In Supply Chain Under Making To Order Production Mode

As manufacturers and retailers belong to several relatively independent entities under making to order production mode, they always make their own decisions in order to get their own maximum profit, however, the whole supply chain which is made up of the manufacturers and retailers usually could not get the maximum profits. Therefore, it is very meaningful to increase the profits of the whole supply chain by using supply chain contract theory under system point view.This paper took the supply chain as a whole system, and did some researches on the decision making of manufacturers and retailers and the risk control method with the permissible delay in payments under making to order production mode. Firstly, the replenishment decisions of the retailers had been researched when the credit period provided by the manufacturers was fixed; Then, the replenishment decisions of the manufacturers and retailers had been researched when the credit period provided by the manufacturers was not fixed under common market structure; Finally, this paper discussed some methods on preventing credit risk which was brought out by using the permissible delay in payments. Concretely, our contributions were as following:1. This paper proposed the optimal replenishment policies on the side of the retailer based on the credit period offered by the manufacturers, and then established the total cost mathematical model of the retailer; also, the replenishment decisions under permissible delay in payments linked to ordering quantity had been proposed.2. This paper did some researches on the replenishment decisions with deteriorating items under permissible delay in payments on the side of the retailer. This paper proposed the optimal replenishment policies of the retailer based on the credit period offered by the manufacturer, then established the mathematical model.3. This paper did some researches on the profit changes after the supply chain applies the permissible delay in payments to cope with the variation of market environment in monopolistic competition market under making to order production mode. From the perspective of the producer and the retailer, the mathematical models had been established.4. This paper did some researches on the optimal replenishment and sales policies of the manufacturers and the retailers in duopoly oligopoly market under making to order production mode when the permissible delay in payments was applied in the supply chain. From the perspective of the producer and the retailers, mathematical models had been established, respectively. The basic condition whether trigger strategy was deviated was also discussed in this paper by using the infinitely repeated game theory.5. Based on analytic network process (ANP), the criteria system to evaluate the credit degree of the retailers had been established, and the method on selecting retailer with higher credit degree had been proposed from the point of view on preventing credit risk for manufacturers.6. Aiming at the credit risk after the permissible delay in payments were applied in the supply chain, this paper discussed the reputation incentive mechanism in the supply chain from the manufacturer's point of view.