Coordination of Supply Chain with VMI Considering the Trade Credit Financing

Abstract

Abstract:

In this paper, we consider the two echelon supply chain adopting the vendor management inventory and trade credit, which is seldom reported in the literatures. First, the basic model of the centralized supply chain is built to obtain the benchmark solutions, and the models of traditional supply chain and VMI supply chain are established to obtain the optimal promotional effort and the replenishment policy; second, two coordination mechanisms of promotional cost sharing and cash discount are employed to coordinate the VMI supply chain and distribute the profits between the members; finally, the numerical analysis and case study are carried out to illustrate the comparison of the two coordination mechanisms.

Key words: vendor-managed inventory, trade credit, ordination, supply chain

Qin Juanjuan, Bai Xiaojian, Zhang Chen. Coordination of Supply Chain with VMI Considering the Trade Credit Financing[J]. , 2016, 28(3): 207-220.

References

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