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Operational Decision and Optimal Choice of Payment to a Supply Chain Based on Wholesale Price Incentive
SHEN Jiannan,SHAO Xiaofeng
Shanghai Jiaotong University, Shanghai, China

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Abstract   In order to seek the ways to coordinate the payment between downstream and upstream enterprise. So there exists a supply chain consisting one manufacturer and one retailer under uncertain demand and three payment terms, this study establishes supply chain dynamic game model based on Push newsvendor. Wholesale price incentive is designed according to different payment. Operational strategies and revenue for each other with or without wholesale price incentive are present, and the conditions of optimal payment are analyzed. The results show that retailer actually chooses to delay payment without wholesale price incentive. But retailer and manufacturer select optimal payment on the basis of wholesale price, risk-free interest, production cycle and sales cycle with wholesale price incentive, and the optimal payment between them is most similar, which verifies wholesale price incentive partly coordinate the optimal payment.
Key wordspayment terms      whole price incentive      operational decisions      coordinate     
Received: 06 June 2017     
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