The trade credit policy in the integrated inventory model with negotiation scheme

• Main Authors: Fu-Sen Kang, 康富森
• Other Authors: Liang-Hsuan Chen
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/03005509602841861501

博士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 97 === Given the fierce competition created by globalization, success in increasing market share and profits relies on better cooperation between vendors and the buyers. To maintain long-term cooperative relationships, vendors can negotiate with buyers to sign a reciprocal contract that includes price discount and payment time. Based on the negotiation results, vendors can provide an incentive to buyers that enables both sides to profit from the cooperative relationship and negotiate a compromise. Additionally, offering delayed payment offers a means for vendors to encourage buyers to increase their order quantities and improve vendor competitive advantage. For buyers, incomes from sales during the credit period can be deposited in a bank or invested to earn extra profits. This study incorporates the notion of trade credits into the cooperative relationship between single vendor and single buyer. From the whole viewpoint, this study establishes theorems to determine the optimal production and order strategy in the proposed models. Based on principle of mutual benefit, the vendor can provide preferential terms to the buyer to help sustain long-term cooperative relationships. This study also provides solution algorithms to obtain acceptable compromise solutions for negotiation by both sides. Finally, numerical examples are provided demonstrating the applicability of the proposed models.