A note on supply chain coordination for joint determination of order quantity and reorder point using a credit option

作者：Cobb Barry R^*; Johnson Alan W

来源：European Journal of Operational Research, 2014, 233(3): 790-794.

DOI：10.1016/j.ejor.2013.10.009

• Supply chain management
• Continuous review
• Coordination
• Credit option
• Rebate
• Uncertainty

Credit options and side payments are two methods suggested for achieving coordination in a two-echelon supply chain. We examine the credit option coordination mechanism introduced by Chaharsooghi and Heydari [Chaharsooghi, S., & Heydari, J. (2010). Supply chain coordination for the joint determination of order quantity and reorder point using credit option. European Journal of Operational Research, 204(1), 86-95]. This method assumes that the supplier's opportunity costs are equal to the reduction in the buyer's financial holding costs during the credit period. In this note, we show that Chaharsooghi and Heydari's method is not applicable when buyer and supplier opportunity costs are not equal. We introduce an alternate per order rebate method that reduces supply chain costs to centralized management levels.

• 出版日期2014-3-16
• 单位中国人民解放军空军电子技术研究所