The Study On The Ordering Strategies Of Perishable Product Based On The Delay In Payments

With the highly development of economy and life level, the requirement of quantity andquality to the perishable foods are all increasing，When retailers manage for the inventory ofperishable products, besides consider the main procurement costs, inventory holding cost,ordering cost, but also need take the deterioration rate into account. At the same time, thesuppliers, in order to seize market share, will choose to cooperate with retailers, giving themcertain profit kickbacks or other forms of preferential policies for retailers, deferred paymentis one of the most widely used way, retailers how to apply the deferred payment conditionsprovided by the supplier to control inventory cost for perishable goods and improve net profithas become a research focus.Through studying researches about related backgrounds on inventory problems forperishable products and deferred payment inventory model for perishable products, andfocusing on retailers’ net profit. First, assume that the retailer’s inventory does not allow out ofstate, the deterioration rate and demand rates are constant. Then two cases are discussed,when retailer’s order quantity is less than the minimum order amount provided by suppliers,retailers need cash on delivery which will resulting opportunity cost; When retailer’s orderquantity greater than the minimum order amount provided by suppliers, retailers maypostpone the payment, they both have the opportunity cost for inventory and interest incomegenerated by the delay in payment. Models are established for the different states, using aTaylor series approximation method to solve the problem and retailers how to choose thereplenishment cycle and order quantity and ensure that the net profit is biggest, Finally, aconclusion about the whole paper is made and possible further study directions wereproposed.