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Effects of human errors and trade-credit financing in a two-echelon supply chain model

Title
Effects of human errors and trade-credit financing in a two-echelon supply chain model
Author
Sarkar, Biswajit
Keywords
supply chain management; imperfect items; human errors; trade-credit financing
Issue Date
2018-08
Publisher
INDERSCIENCE ENTERPRISES LTD
Citation
EUROPEAN JOURNAL OF INDUSTRIAL ENGINEERING, v. 12, No. 4, Page. 465-503
Abstract
This paper develops two centralised two-echelon supply chain models with the trade-credit financing and inspection errors. Both models follow a single-setup-multi-delivery (SSMD) policy and each delivery is designed using the just-in-time (JIT) method to increase the efficiency of the supply chain. In first model, the random defective rate is assumed and each delivered item goes through inspection process at the buyer's end due to the contract with vendor, because vendor gives a trade-credit support to buyer. In second model, human errors of Type I and Type II are considered due to tiredness and ignorance of the inspector during inspection process. The joint annual cost of supply chain is minimised with respect to order quantity and number of shipments. Finally, some numerical examples, sensitivity analysis, and graphical representations are given to illustrate more savings from existing literature.
URI
https://www.inderscienceonline.com/doi/abs/10.1504/EJIE.2018.093574https://repository.hanyang.ac.kr/handle/20.500.11754/121400
ISSN
1751-5254; 1751-5262
DOI
10.1504/EJIE.2018.093574
Appears in Collections:
COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > INDUSTRIAL AND MANAGEMENT ENGINEERING(산업경영공학과) > Articles
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