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A three level integrated inventory model with time dependent demand and production rate under a trade credit policy for both distributor and retailer

Singh N., Vaish B., Singh S. R.

Control and Cybernetics

2014

Vol. 43, no. 3

439--469

This paper develops a three echelon supply chain inventory model with permissible delay in payment, in which distributor and retailer’s demand is time dependent and production rate for manufacturer is also time sensitive. The models consider the two level trade credit policy in manufacturer-distributor and distributor-retailer relationship in this supply chain model. A simple solution algorithm is presented to determine the optimal order quantity and optimal cycle time of the total cost function and the number of shipments for distributor and retailer. The results are discussed with numerical examples and the particular cases of the model are also discussed in brief.