Based On The Timing Of Credit To Pay The Two Supply Chain Ordering

In recent days, order quantity in supply chain management has being triggered lots of researches' enthusiasm in this field. Achieving effective coordination among suppliers and retailers has become a pertinent research issue. This coordination is a joint decision policy achieved by a supplier(s) and a retailer(s) characterized by an agreement on the order quantity and the trade credit scenario, e. g., quantity discounts, delay in payments. This thesis studies the permissible delay in payments in a two-level supply chain, and cost models are offered to formulate the changes of the cost of both players, and order policies are also presented depending on the results.Here are the innovations of the thesis: firstly, the permissible delay in payments and the period time are considered as the joint decision variables and the permissible delay in payment is also adopted as a trade credit scenario to coordinate the order quantities between the two levels. Secondly, regarding to the time of permissible delay in payment, cost functions are presented according to the order policy, and the existences of the optimal time are proved. Thirdly, the whole profit of the supply chain between non-delay in payment non-coordination and delay in payment coordination supply chain is compared; a profit-sharing scenario for the distribution of generated net savings among the players in the supply chain is also presented.The writer looks forward to offering the explanations in theory for suppliers and retailers to cut the cost of supply chain ultimately.