Research On Ordering Decision Making Of Fashion Supply Chain Based On Delay In Payment Contract

Delay in payment contract has been widely applied in the operation of the supply chains of fashion products,especially in the small and medium-sized clothing enterprises,the delayed payment of suppliers and retailers often exists,because the small and medium-sized clothing enterprises are insufficient in funds owing to the small capital scale.Meanwhile,because of the strong fashionability and short life cycle,the fashion products make the enterprises face serious inventory problem,which will occupy the resources of enterprises such as funds,however,delay in payment contract provided by the suppliers can solve the funds insufficiency in some extent,attract more downstream retailing enterprises to timely sell the fashion products,enlarge the market occupancy of fashion products in sales stage and speed up the sales of fashion products thus to improve the inventory situation,therefore,it has practical significance to apply the delay in payment contract to solve the inventory problem in the supply chain of fashion products.However,the existing trade credit behaviors among the enterprises engaging in fashion products mainly rely on the subjective decisions of managers,especially for the retailers,in face of the purchased price,the lowest ordering volume and delayed payment term provided by the suppliers,there lacks of rational support of mathematical model in determining the optimal ordering volume and ordering cycle to obtain the profit maximization,which causes that delay in payment contract can not play the full role to improve the supply chains of fashion products.The research for the paper bases on the reality of supply chains of fashion products to consider the privileges to parts of delay payments from the suppliers to the retailers,namely when the ordering volume of retailers is lower than the pre-determined ordering volume stipulated by the suppliers,the retailers can also obtain the privilege to delay payment for partial payments,thus to establish the mathematical model on total profits for retailers in order to gain the optimal ordering policy for retailers under different situations and analyze the influence of related parameters to ordering policy.The research can provide theoretical foundation for the ordering policy in the delay in payment contract for the fashion products enterprises or retailers,and is significant to improve the competitiveness for the fashion supply chain.