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 proceedingConference article published in proceeding or bookAcademic researchpeer-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 languageEnglish
Title of host publicationSCMIS 2010 - Proceedings of 2010 8th International Conference on Supply Chain Management and Information Systems
Subtitle of host publicationLogistics Systems and Engineering
Publication statusPublished - 1 Dec 2010
Event2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010 - Hong Kong, Hong Kong
Duration: 6 Oct 20108 Oct 2010

Conference

Conference2010 8th International Conference on Supply Chain Management and Information Systems: Logistics Systems and Engineering, SCMIS 2010
Country/TerritoryHong Kong
CityHong Kong
Period6/10/108/10/10

Keywords

  • Logistics
  • Production
  • Synchronization
  • Trade credit

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Information Systems and Management

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