In practice, in order to reduce default risks with credit-risk customers, a seller (e.g., a manufacturer or a retailer) frequently requests its credit-risk customers to pay a fraction of the purchase amount at the time of placing an order as collateral deposit, and then grants a permissible delay on the outstanding balance (i.e., a down-stream partial trade credit). By contrast, the seller usua...

In this paper, we study a multi-echelon uncapacitated lot-sizing problem in series (mULS), where the output of the intermediate echelons has its own external demand, and is also an input to the next echelon. We propose a polynomial-time dynamic programming algorithm, which gives a tight, compact extended formulation for the two echelon case (2-ULS). Next, we present a family of valid inequaliti...

This paper discusses the economic order quantity ( EOQ ) under partial trade credit. In 1985, Goyal assumed that: (i) The unit selling price and the unit purchasing price were equal. (ii) The supplier would offer the retailer full trade credit under condition of delay payments. The main purpose of this paper wants to modify Goyal’s model to presume that the unit selling price and the unit purch...

In 1985, Goyal considered the retailer’s inventory replenishment problem under trade credit independent of the order quantity and the retailer’s unit selling price and the purchasing price per unit were equal. In this paper, the restrictive assumptions of the trade credit independent of the order quantity and the retailer’s unit selling price equaled to the purchasing price per unit are relaxed...

This paper investigates the economic order quantity (EOQ) — based inventory model for a retailer under two levels of trade credit to reflect the supply chain management situation in the fuzzy sense. It is assumed that the retailer maintains a powerful position and can obtain the full trade credit offered by the supplier yet the retailer just offers a partial trade credit to customers. The deman...

Trade credit refers to providing goods and services on a deferred payment basis. Commercial credit management is a matter of great importance for most small and medium enterprises (SMEs), since it represents a significant portion of their assets. Commercial lending involves assuming some credit risk due to exposure to default. Thus, the management of trade credit and payment delays is strongly ...

Multi-echelon distribution schemes are one of the most common strategies adopted by the transport companies in an aim of cost reduction, but their identification in scientific literature is not always easy due to a lack of unification. This paper presents the main concepts of two-echelon distribution via a systematic review, in the specific a meta-narrative analysis, in order to identify and un...