Dual buyer–vendor trade credit with imprecise holding cost and stochastic lead time allows screening
摘要
Product sales on an e-commerce platform primarily depend on its price and market availability, which are volatile and unpredictable. To incorporate the market's instability, the effect of price and displayed stock-sensitive stochastic demand have been included in a two-tier e-commercial supply chain model with a single buyer and vendor. After the scrutiny process, the vendor accrued all the defective items at the end of each cycle and reprocessed them to make a quality product. The ideal things are shipped in batches to the buyer via various means. Items ordered are not immediately available to the buyer due to key specifications, and their transit uncertainty is a stochastic lead time. The article additionally focuses on the two-level trade finance strategy, in which the buyer (or e-tailer) offers a downstream credit span and the supplier provides an upstream credit span. Sellers provide longer credit periods than customers (retailer or online) but sellers provide shorter loan terms than buyers. A numerical study based on retail store or online sellerdata inferred that when a buyer receives more extended trade credit from a vendor, they earn nearly $20,000 more than in the other scenario. It is observed that 20% reduction in selling price and number of batches, the total cost decreases by approximately 24%. The paper provides the decisive scheme for determining the optimal number of cycles, estimated refilling time, and consumer memory impactfor achieving minimal total cost.