Co-ordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles with trade credit policy

Chi Kin Chan; Y. C.E. Lee

Co-ordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles with trade credit policy

Chi Kin Chan, Y. C.E. Lee

Research output: Chapter in book / Conference proceeding › Conference article published in proceeding or book › Academic research › peer-review

Abstract

In this paper, we propose a coordinated singlevendor multi-buyer supply chain model by synchronizing delivery and production cycles with trade credit option. The synchronization is achieved by scheduling the actual delivery days of the buyers and coordinating it with the vendor's production cycle. It can be shown that the synchronized cycles policy works better, in terms of total system costs, than independent optimization. While the vendor is benefited from the co-ordination by synchronized cycles, a credit option scheme is proposed which can guarantee that a buyer's total relevant cost, as a result of coordination, will not increase when compared with independent optimization. An equitable profitsharing scheme is also developed and a numerical example is provided.

Original language	English
Title of host publication	SCMIS 2010 - Proceedings of 2010 8th International Conference on Supply Chain Management and Information Systems
Subtitle of host publication	Logistics Systems and Engineering
Publication status	Published - 1 Dec 2010
Event	2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010 - Hong Kong, Hong Kong Duration: 6 Oct 2010 → 8 Oct 2010

Conference

Conference	2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010
Country/Territory	Hong Kong
City	Hong Kong
Period	6/10/10 → 8/10/10

Keywords

Logistics
Production
Synchronization
Trade credit

ASJC Scopus subject areas

Management Information Systems
Information Systems
Information Systems and Management

Cite this

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title = "Co-ordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles with trade credit policy",

abstract = "In this paper, we propose a coordinated singlevendor multi-buyer supply chain model by synchronizing delivery and production cycles with trade credit option. The synchronization is achieved by scheduling the actual delivery days of the buyers and coordinating it with the vendor's production cycle. It can be shown that the synchronized cycles policy works better, in terms of total system costs, than independent optimization. While the vendor is benefited from the co-ordination by synchronized cycles, a credit option scheme is proposed which can guarantee that a buyer's total relevant cost, as a result of coordination, will not increase when compared with independent optimization. An equitable profitsharing scheme is also developed and a numerical example is provided.",

keywords = "Logistics, Production, Synchronization, Trade credit",

author = "Chan, {Chi Kin} and Lee, {Y. C.E.}",

year = "2010",

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language = "English",

isbn = "9789623676960",

booktitle = "SCMIS 2010 - Proceedings of 2010 8th International Conference on Supply Chain Management and Information Systems",

note = "2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010 ; Conference date: 06-10-2010 Through 08-10-2010",

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Chan, CK & Lee, YCE 2010, Co-ordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles with trade credit policy. in SCMIS 2010 - Proceedings of 2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering., 5681718, 2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010, Hong Kong, Hong Kong, 6/10/10.

Co-ordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles with trade credit policy. / Chan, Chi Kin; Lee, Y. C.E.
SCMIS 2010 - Proceedings of 2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering. 2010. 5681718.

Research output: Chapter in book / Conference proceeding › Conference article published in proceeding or book › Academic research › peer-review

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AU - Chan, Chi Kin

AU - Lee, Y. C.E.

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N2 - In this paper, we propose a coordinated singlevendor multi-buyer supply chain model by synchronizing delivery and production cycles with trade credit option. The synchronization is achieved by scheduling the actual delivery days of the buyers and coordinating it with the vendor's production cycle. It can be shown that the synchronized cycles policy works better, in terms of total system costs, than independent optimization. While the vendor is benefited from the co-ordination by synchronized cycles, a credit option scheme is proposed which can guarantee that a buyer's total relevant cost, as a result of coordination, will not increase when compared with independent optimization. An equitable profitsharing scheme is also developed and a numerical example is provided.

AB - In this paper, we propose a coordinated singlevendor multi-buyer supply chain model by synchronizing delivery and production cycles with trade credit option. The synchronization is achieved by scheduling the actual delivery days of the buyers and coordinating it with the vendor's production cycle. It can be shown that the synchronized cycles policy works better, in terms of total system costs, than independent optimization. While the vendor is benefited from the co-ordination by synchronized cycles, a credit option scheme is proposed which can guarantee that a buyer's total relevant cost, as a result of coordination, will not increase when compared with independent optimization. An equitable profitsharing scheme is also developed and a numerical example is provided.

KW - Logistics

KW - Production

KW - Synchronization

KW - Trade credit

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M3 - Conference article published in proceeding or book

SN - 9789623676960

BT - SCMIS 2010 - Proceedings of 2010 8th International Conference on Supply Chain Management and Information Systems

T2 - 2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010

Y2 - 6 October 2010 through 8 October 2010

ER -

Co-ordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles with trade credit policy

Abstract

Conference

Keywords

ASJC Scopus subject areas

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