MODELLING CONSIGNMENT AND CREDIT PAYMENTS USING THE NET PRESENT VALUE PRINCIPLE
In the recent years, companies have introduced different supply chain contracts in order to enhance information sharing and strengthen collaboration among supply chain members. Consignment and credit payments are two typical contract agreements, which have been investigated in several previous studies. However, the early researches are mainly based on the cost performance in order to investigate their advantages and disadvantages. Apparently, the above two types of contract generate alternate cash flows in a supply chain, and therefore a cash flow based approach should be more appropriate and precise to illustrate their economic consequences. In this paper, we study a single-manufacturer, single-retailer supply chain system in stochastic demand case. The net present value principle is applied to study the motive for adopting either of the above two types of contract agreements, from the point of view of the manufacturer, of the retailer, and of the supply chain as a whole. Risk issues associated with these two contract types are also studied. The Laplace transform is used for providing a shortcut to obtain an expression for the objective function.
Consignment contract credit payment net present value cash flow supply chain risk.
Ou Tang Robert W. Grubbstrom
Linkoping Institute of Technology, SE-581 83 Linkoping, Sweden
国际会议
上海
英文
1-5
2009-08-02（万方平台首次上网日期，不代表论文的发表时间）