Study On Optimal Inventory Policies For Two-echelon Supply Chain Based On Payment Delay

With the development of economic globalization, the rapid growth of sociol-economyand science, the operating environment faced by enterprises is more and more complex,supply-chain based on the internet challenged the traditional inventory management theory. Ifenterprises want to gain some advantages from the environment, they must adjust theirstrategies to international development. Because the increasingly fierce social competition,every enterprise in the supply-chain seeking to the strategy of maintaining a positive andstable partnership with its upstream and downstream enterprises. Payment delay can helpthem. Payment delay policy is a win-win policy. Supplier and retailer can form a long-termstable cooperative partnership under the policy, and it can conceal the price discriminationeffectively.In the process of transaction, the policy of payment delay always been used.On the purpose of optimizing total cost of retailer, the paper study payment delay modelin the secondary supply chain, which includes one supplier and one retailer.On the basis ofelaborating supply-chain management and inventory management theory, it analyzed theclassical Economic Order Quantity model.A new payment delay model was constructed byimproving Yung-Fu Huang’s model, considering the difference between buying price andcelling price. A extra condition-cash discount was added into former model, constructing anew model of payment delay under cash discount, which extending existed payment delaymodel under cash discount. Finally, the paper get optimal ordering policy of the retailer bysolving the model with mathematical knowledge and optimal theory, also illustrated theconclusions gain from model by dates come from C++programmer and analyzed thesensitivity of important parameters in the model to study chang of the cost with various value.