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Chinese Journal of Management Science ›› 2021, Vol. 29 ›› Issue (2): 108-116.doi: 10.16381/j.cnki.issn1003-207x.2021.02.012

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Study on the Optimal Ordering Policy of Perishable Products with Delayed Payment

XU Xian-hao1, WANG Qian1, ZENG Kuan2, PENG Hong-xia3   

  1. 1. Management School, Huazhong University of Science & Technology, Wuhan 430074, China;
    2. Management School, Wuhan Textile University, Wuhan 430200, China;
    3. Business School, Hubei University, Wuhan 430063, China
  • Received:2018-04-27 Revised:2018-09-07 Published:2021-03-04

Abstract: The optimal ordering policy of perishable products in a two-level supply chain with a single-supplier and capital-constrained multi-retailers is investigated, in which the supplier allows the delayed payment. It is considered there is no shortage allowed, and the price changes with the customer's willingness to buy the perishable product. Through the numerical test using genetic algorithm (GA), the optimal ordering policy is found out. The results show that the delayed payment helps to improve the whole supply chain efficiency, which would increase the profits for each supply chain member while lowering the risk, and the supplier benefits more from the delayed payment. Finally, the sensitivity analysis is conducted to discuss the effect of different parameters on the total profits, which provides management insight forordering decisions.

Key words: delay in payment, perishable products, ordering policy, Genetic Algorithm

CLC Number: