Supply Chain Optimization Strategy Based On The Inventory Of Credit Payment

In an increasingly competitive market,to attract new buyers or stimulate demand and realize the optimal allocation of the resource,the sellers will supply certain trade credit period for the buyers.The buyers needn't pay the interest to the sellers during the credit period,but if the buyers fail to pay the cost at the end of the credit period,they are required to pay the sellers in higher interest rate.The trade credit policy will help buyers reduce risks and realize the optimal allocation of the resource,it can also help the sellers cover up the price discrimination effectively and make the sellers understand the condition of the buys' credit better,so as to accelerate the turnover rate of the inventory and reduce waste of raw materials.Therefore,it can play an important role in promoting economic development and social energy saving.Trade credit increases sales volume for the sellers,but meanwhile make them bear certain bad debts and default risks.The buyers can enjoy the returns on opportunity investment caused by the trade credit policy,but at the same time they have to bear the capital loss owing to the increasing order quantity.The study on the strategy of Inventory optimization based on Trade Credit in supply chain extends the content of the inventory optimization and supply chain coordination. The research results have important economic significance in the inventory optimization and effectively allocation of the capital,and have the practical significance in saving the limited social energy.Based on former research,the paper researches the strategy of Inventory optimization based on Trade Credit in supply chain.The contents of the paper can be concluded as follows:1) The paper represents the related works at home or abroad and generalizes the inventory models from three different perspectives(the retailers,the suppliers and cooperation).Then,it analyses and compares the research statue of trade credit at home or abroad,summarizes the current problems of research,and points out feasible research directions.2) The paper discusses the related problems of trade credit and summarizes various deficiencies and risks of trade credit in today's business environment.3) Taking promotion,deteriorating items,demand rate as a function of retailer price and so on into account,the paper investigates the EOQ and EPQ models under single-level trade credit and two-level trade credit by quantitative analysis from three different perspectives(the retilaers,the suppliers and cooperation),then it proposes optimization algorithm and makes sensitivity analysis on various parameters.