The integrated inventory model with the transportation cost and two-level trade credit in supply chain management

摘要

This paper takes the transportation cost into account to develop the new supplier-retailer inventory model under the condition that both supplier and retailer have adopted the two-level trade credit policy. Moreover, this paper presents the integrated total profit per unit time ∏(n,T) of two decision variables n (the number of shipments from supplier to retailer per production run, a positive integer) and T (retailer's replenishment cycle length). The main purpose of this paper not only derives the closed-form formulations for the optimal solution (n*, T*) of ∏(n, T) but also simplifies the algorithm to determine the optimal solution described by Su et al. (2007) [36]. Finally, numerical examples are used to compare with those by Su et al. (2007) [36].