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This study investigated non-instantaneous deteriorating items because not all products deteriorate immediately. In the high-tech product life cycle, the product demand increases linearly substantially in the growth stage and maintains a near-constant level in the maturity stage. This is a ramp-type demand rate. To satisfy the demand as shortages occur, partial backlogging is necessary. The advance-cash-credit payment scheme, comprising advance, cash, and credit payments, has gained popularity in business transactions to improve cash flow flexibility among supply chain participants. This study explored a partial backlogging inventory model with ramp-type demand for non-instantaneous deteriorating items under generalized payment. The proposed model also incorporated discounted cash flow analysis to account for the time value of the profit function. This study attempted to determine the optimal replenishment strategy to maximize the present value of the total profit. Finally, we conducted a sensitivity analysis to examine the efficacy of the proposed model and gain managerial insights. The optimal total profit rises with an increase in the permissible delay period and sale price but decreases with an increase in ordering and purchase costs. Then, the decision-maker can refer to the managerial insights to choose the appropriate parameter value for the operation. [ABSTRACT FROM AUTHOR]

In the supplier–retailer–consumer system, the retailer's replenishment and pricing strategies impact the entire transaction process, forming a comprehensive trading market. Suppliers offer advance-cash-credit payments to retailers, while retailers provide customers with cash-credit payment options. In the current health-conscious consumer market, purchasing decisions are influenced not only by commodity prices but also by the freshness of products, particularly perishable goods. Growing awareness of climate change and the advent of carbon emission policies have raised concerns about the environmental costs of business transactions. This study focuses on perishable products whose demand is influenced by both price and freshness. It explores the adoption of various payment methods by suppliers and retailers, as well as the impact of carbon emission cap-and-trade policies or carbon tax policies on management and pricing strategies. Suitable inventory models are established to determine the optimal replenishment and pricing strategies for maximizing the current value of total profit. We illustrate that the current value of total profit demonstrates joint concavity concerning both the selling price and the replenishment time. Finally, we verify the proposed models using numerical examples and present the findings of sensitivity analyses. The findings of this study yield several valuable insights for inventory management of perishable goods. [ABSTRACT FROM AUTHOR]

Global warming, driven by excessive carbon emissions, harms nature and society. Governments’ carbon reduction policies are crucial for sustainable industrial growth, integrating eco-friendly practices into production decisions. In addition, sellers often demand upfront payment for goods as a performance guarantee, receive a portion upon delivery, and finalize the transaction on credit. This advance-cash-credit (ACC) payment scheme is becoming increasingly common. Based on the above, this study proposes a production–inventory model with a carbon cap-and-trade policy and an ACC payment scheme and discusses optimal production and replenishment strategies. We also consider deteriorating raw materials, deteriorating finished products, and an imperfect production system. Mathematical methods and numerical examples are discussed to clarify the solution process, and a sensitivity analysis of parameters is performed. We demonstrate that under the two-stage trade credit and ACC scheme, a larger credit payment component enables the production–inventory system to generate higher total profits, and that a lower charged interest, higher earned interest, or later overall payment (for the ACC scheme) leads to lower carbon emissions. Furthermore, changing carbon emission quota does not affect annual carbon emissions but increasing carbon trading price does, thereby encouraging companies to reduce annual carbon emissions under a carbon cap-and-trade policy.

This study investigated non-instantaneous deteriorating items because not all products deteriorate immediately. In the high-tech product life cycle, the product demand increases linearly substantially in the growth stage and maintains a near-constant level in the maturity stage. This is a ramp-type demand rate. To satisfy the demand as shortages occur, partial backlogging is necessary. The advance-cash-credit payment scheme, comprising advance, cash, and credit payments, has gained popularity in business transactions to improve cash flow flexibility among supply chain participants. This study explored a partial backlogging inventory model with ramp-type demand for non-instantaneous deteriorating items under generalized payment. The proposed model also incorporated discounted cash flow analysis to account for the time value of the profit function. This study attempted to determine the optimal replenishment strategy to maximize the present value of the total profit. Finally, we conducted a sensitivity analysis to examine the efficacy of the proposed model and gain managerial insights. The optimal total profit rises with an increase in the permissible delay period and sale price but decreases with an increase in ordering and purchase costs. Then, the decision-maker can refer to the managerial insights to choose the appropriate parameter value for the operation.

In the supplier–retailer–consumer system, the retailer’s replenishment and pricing strategies impact the entire transaction process, forming a comprehensive trading market. Suppliers offer advance-cash-credit payments to retailers, while retailers provide customers with cash-credit payment options. In the current health-conscious consumer market, purchasing decisions are influenced not only by commodity prices but also by the freshness of products, particularly perishable goods. Growing awareness of climate change and the advent of carbon emission policies have raised concerns about the environmental costs of business transactions. This study focuses on perishable products whose demand is influenced by both price and freshness. It explores the adoption of various payment methods by suppliers and retailers, as well as the impact of carbon emission cap-and-trade policies or carbon tax policies on management and pricing strategies. Suitable inventory models are established to determine the optimal replenishment and pricing strategies for maximizing the current value of total profit. We illustrate that the current value of total profit demonstrates joint concavity concerning both the selling price and the replenishment time. Finally, we verify the proposed models using numerical examples and present the findings of sensitivity analyses. The findings of this study yield several valuable insights for inventory management of perishable goods.

This paper studies the optimal replenishment strategy of the retailer under partial two levels of credit. The paper also considers the following scenarios: (1) the product under consideration is a deteriorating item, (2) the demand function is an incremental function of time, and (3) the retailer pays the supplier by the payment method of Advance-Cash-Credit (ACC) and gives his/her customers a certain credit period. (4) The supplier provides the retailer with a certain price discount to facilitate sales. The goal of the paper is to decide the retailer's order cycle, which minimizes his/her total cost per unit time. Firstly, we proved the existence and uniqueness of the optimal solution. Secondly, we validated the theoretical results and discussed the performance of upstream ACC payment and downstream credit payment by numerical analysis of key parameters, numerical results show that it is cheaper for the retailer to pay for the payment in upstream ACC and downstream credit payment than in traditional payment method (i.e., upstream cash and downstream cash payment method), which encourage the retailer to order more quantity and less frequently under the former payment method. Thirdly, we compared the retailer's order behaviors and total cost per unit time under the following five two-level payment types: upstream cash and downstream cash payment, upstream advance, cash, credit, ACC and downstream credit payment, in which the supplier will provide a certain price discount when the retailer pays in advance. It is found that the retailer pays the supplier in upstream advance and downstream credit payment is the lowest cost to the retailer, and it will lead to order the most quantities under this payment method, while the retailer pays the supplier with upstream credit and downstream credit (upstream credit period is shorter than the downstream credit period) is the highest cost to the retailer. The research results can help the retailers make the payment selections and optimize their operational decisions. [ABSTRACT FROM AUTHOR]

In practice, a vendor may offer a retailer an advance-cash-credit (ACC) payment scheme. This implies the buyer needs to pay a fraction of the purchasing cost before he receives the item (advance payment), some cash when the item is arrived (cash on delivery), and then the remaining purchasing cost after a credit period (credit payment). This paper studies the effect of payment schemes on the supply chain network design. The network consists of an outside supplier, multiple distribution centers (DCs), and multiple retailers. The DCs receive an upstream ACC payment from the supplier. This study attempts to determine the optimal location, allocation, as well as the inventory cycle time while minimizing total cost. A continuous approximation is used in the model development and the time value of money concept is considered, since different payment schemes related to time change the cash value. Numerical studies are adopted to demonstrate the solution approach and the effects of changing parameters on decisions and total cost. This study provides novel management implications for supply chain network designers' reference. The results show that the number of DCs to be opened, the joint replenishment cycle time of DC, and the total cost increase as the interest earned decreases and the interest charged increases. [ABSTRACT FROM AUTHOR]

Recently, market globalization and competition have forced companies to find alternative means to boost sales and revenue. The use of the cash flow is increasingly becoming a viable alternative for managers to improve their company's profitability in a supply chain. In today's business transactions, a supplier usually asks a manufacturer to pay via the advance-cash-credit (ACC) payment scheme if the number of goods procured is high. Additionally, product perishability has been considered in an economic production quantity (EPQ) model since it is a real phenomenon. The present work develops an EPQ model for perishable products under the ACC payment scheme. The objective of the proposed model is to determine the optimal selling price and cycle time while maximizing profit under the ACC payment scheme using a discounted cash flow analysis. A nonlinear optimization algorithm is also proposed to solve the problem. In addition, some numerical examples are employed to illustrate the solution approach and show the concavity of the present value of the total annual profit in terms of both selling price and cycle time. The numerical results show that our proposal algorithm could be applied well to solve the problems. In addition, a sensitivity analysis is conducted to obtain some managerial insights. For example, if the impact of advance payment on procurement cost is relatively smaller than that of cash payment, then it is more profitable for the manufacturer to ask for a cash payment than to receive an advance payment and vice versa. [ABSTRACT FROM AUTHOR]

• We considered a three-echelon supply chain structure (supplier-retailer-customer). • The retailer receives an upstream ACC & offers a partial downstream credit payment. • The model is based on the carbon cap-and-trade policy & credit period policy. • The deterioration rate of an item increases over time with an expiration date. • Different payment schemes are compared to gain meaningful management enlightenment. This study investigates a sustainable three-echelon supply chain structure (supplier–retailer–customer) from the retailer's perspective for a perishable product where: (1) the retailer pays the purchase cost to the supplier in the form of an advance-cash-credit (ACC) payment while granting their customers a partial credit, (2) the supplier offers a price discount to the retailer to facilitate sales, (3) the deterioration rate of items increases over time due to an expiration date, (4) the customer is allowed a partial delay in orders with a fixed market tolerance period, and (5) the supply chain management (SCM) structure takes consideration of government cap-and-trade regulation. This paper intends to establish the retailer's optimum cycle time, selling price, and inventory period simultaneously to maximize his/her total profit. An efficient algorithm has been constructed to find optimal solutions. Two examples have been presented to validate the proposed model. Furthermore, a comparative analysis of the four different payment methods (upstream ACC, advance, cash, credit, and downstream partial credit payments) has been carried out and sensitivity analyses have been performed to gain managerial insights. Our numerical results reveal that with the increase in the discount rate, the selling price reduces significantly, however, the retailer's profit increases tremendously. The reason for this phenomenon is that a higher discount rate can lead to a higher profit for the retailer, hence, the retailer may set a lower price to increase sales. Many retailers desire a high discount rate, which is associated with the upstream advance and downstream partial credit payment; however, the computational results show that this payment method causes significant damage to the environment. Hence, two payment methods (upstream ACC, credit, and downstream partial credit payments) are recommended. The reason is that these two payment types bring more profits to the retailer and result in less damage to the environment. [ABSTRACT FROM AUTHOR]