Coordinating Supply Chains with a Credit Mechanism

This paper studies the supply chain coordination with a trade credit under symmetric and asymmetric information, where the retailer has an individual profit target from the business and the vendor is the decision-maker of the supply chain. We propose a coordination mechanism through credit contracts...

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Main Authors: Hu, F., Xu, Honglei, Lim, C., Sun, X.
Format: Journal Article
Published: InforMath Publishing Group 2014
Subjects:
Online Access:http://www.e-ndst.kiev.ua/v14n2/1(47)a.pdf
http://hdl.handle.net/20.500.11937/16248
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author Hu, F.
Xu, Honglei
Lim, C.
Sun, X.
author_facet Hu, F.
Xu, Honglei
Lim, C.
Sun, X.
author_sort Hu, F.
building Curtin Institutional Repository
collection Online Access
description This paper studies the supply chain coordination with a trade credit under symmetric and asymmetric information, where the retailer has an individual profit target from the business and the vendor is the decision-maker of the supply chain. We propose a coordination mechanism through credit contracts and show that a win-win outcome is achieved by redistributing the cost savings from coordination mechanism under certain constraints. Numerical examples are given to illustrate our results.
first_indexed 2025-11-14T07:15:54Z
format Journal Article
id curtin-20.500.11937-16248
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T07:15:54Z
publishDate 2014
publisher InforMath Publishing Group
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-162482017-01-30T11:54:46Z Coordinating Supply Chains with a Credit Mechanism Hu, F. Xu, Honglei Lim, C. Sun, X. supply chain coordination contract trade credit information asymmetry This paper studies the supply chain coordination with a trade credit under symmetric and asymmetric information, where the retailer has an individual profit target from the business and the vendor is the decision-maker of the supply chain. We propose a coordination mechanism through credit contracts and show that a win-win outcome is achieved by redistributing the cost savings from coordination mechanism under certain constraints. Numerical examples are given to illustrate our results. 2014 Journal Article http://hdl.handle.net/20.500.11937/16248 http://www.e-ndst.kiev.ua/v14n2/1(47)a.pdf InforMath Publishing Group fulltext
spellingShingle supply chain coordination
contract
trade credit
information asymmetry
Hu, F.
Xu, Honglei
Lim, C.
Sun, X.
Coordinating Supply Chains with a Credit Mechanism
title Coordinating Supply Chains with a Credit Mechanism
title_full Coordinating Supply Chains with a Credit Mechanism
title_fullStr Coordinating Supply Chains with a Credit Mechanism
title_full_unstemmed Coordinating Supply Chains with a Credit Mechanism
title_short Coordinating Supply Chains with a Credit Mechanism
title_sort coordinating supply chains with a credit mechanism
topic supply chain coordination
contract
trade credit
information asymmetry
url http://www.e-ndst.kiev.ua/v14n2/1(47)a.pdf
http://hdl.handle.net/20.500.11937/16248