Research On Supply Chain Management Model Based On Delay In Payments

With the rapid development of the global economic integration, the idea of supply chain management has increasingly been paid extensive attention by enterprises and been applied to the practices. Supply chain management refers to the various activities and processes of the entire supply chain system planning, coordination, operation, control and optimization. In the environment of global economic integration, increasing interdependence between enterprises, more and more personalized demands, and supply chain management is increasingly becoming a new kind of enterprise competitive strategy. In day-to-day business transactions, delay in payment is a very common phenomenon. In order to seek profit maximization, the suppliers often offer a credit as a strategy to stimulate retailers to increase the order quantity. Delay in payment will have an impact on the financial costs of the suppliers and retailers. As rational decision makers, the suppliers and the retailers need to optimize the decision-making, so as to achieve profit maximization.This paper mainly studies on the strategy of delay in payment. It has summed up the past research results of the supply chain management based on delay in payment, and studied the models of inventory and supply chain coordination based on delay in payment. And overall, this paper mainly consists of the following three aspects:The first part has introduced the inventory model and supply chain coordination model based on delay in payment, and summarized past research results.The second part has taken a supply chain with a supplier and a retailer as the research object. It has assumed that the supplier not only offers delay in payment to the retailer, but also the retailer in turn offers delay in payment to its customers to stimulate the customers'demand. So the demand of market is linked to the length of credit offered by the retailer. This paper establishes a mathematical model for deteriorating items based on credit-linked demand. And then it derives the optimal replenishment strategies for retailer. The third part has taken a supply chain with a supplier and a retailer as the research object, but production capacity of supplier is insufficient. It has supposed that the supplier can replenish the shortage from the external manufacturer. The external manufacturer takes the coordination strategy of delay in payment, and offers a credit to the supplier of the supply chain. This paper establishes a mathematical model and derives the conditions of outsourcing as well as the proportion based on the credit period offered by the external manufacturer. And it finally compares the supply chain profits of non-coordination with those of coordination.