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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.ijpe.2009.08.010 Byline: Yu-Chung Tsao Keywords: Optimization model; Credit period; Multi-echelon multi-item channel; Promotion cost sharing; Cash discount; Trade allowance Abstract: In this paper we consider multi-echelon multi-item channels subject to supplier's credit period and retailer's promotional effort. The retailer determines the promotional effort and the joint replenishment cycle while still maximizing profits from the perspectives of the individual and channel. We analyze two trade allowances, the promotion cost sharing and the cash discount, which are designed for coordinating the channel partner's behavior. This study provides a comparison model for each party to realize the preference of the coordinating mechanism in light of allowance ratios. Our findings show it is beneficial for both parties to have a coordinating mechanism when a promotion is conducted. Author Affiliation: Department of Business Management, Tatung University, Taipei 104, Taiwan Article History: Received 3 December 2008; Accepted 12 August 2009

Providing advance sales discount program to attract consumers or eliminate demand uncertainty is commonly in today's business, such as music disk, apparel, hooks, etc. Also, trade credit is a popular payment behavior in B2B and B2C transactions. In this research, we use EOQ to model the decisions under advance sales discount and two-echelon trade credits, which involve how much to order and how much to discount to minimize the total related cost. Several examples are given to illustrate the solution procedures and discuss the impact of various system parameters. We conclude with a computational analysis that leads to variety of managerial insights. Keywords: EOQ Ordering Discounting Trade credits Advance sales discount Two-echelon supply chain

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.cie.2008.05.006 Byline: Yu-Chung Tsao Keywords: EOQ; Ordering; Discounting; Trade credits; Advance sales discount; Two-echelon supply chain Abstract: Providing advance sales discount program to attract consumers or eliminate demand uncertainty is commonly in today's business, such as music disk, apparel, books, etc. Also, trade credit is a popular payment behavior in B2B and B2C transactions. In this research, we use EOQ to model the decisions under advance sales discount and two-echelon trade credits, which involve how much to order and how much to discount to minimize the total related cost. Several examples are given to illustrate the solution procedures and discuss the impact of various system parameters. We conclude with a computational analysis that leads to variety of managerial insights. Author Affiliation: Department of Business Management, Tatung University, No. 300, Jhongda Road, Taipei 104, Taiwan Article History: Received 8 September 2007; Revised 13 April 2008; Accepted 21 May 2008

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.cor.2007.01.024 Byline: Yu-Chung Tsao, Gwo-Ji Sheen Abstract: We study the problem of dynamic pricing, promotion and replenishment for a deteriorating item subject to the supplier's trade credit and retailer's promotional effort. In this paper we adopt a price- and time-dependent demand function to model the finite time horizon inventory for deteriorating items. The objective of this paper is to determine the optimal retail price, the promotional effort and the replenishment quantity so that the net profit is maximized. We discuss the properties and develop an algorithm for solving the problem described. The numerical analyses show that an appropriate promotion policy can benefit the retailer and that the promotion policy is important, especially for deteriorating items. Furthermore dynamic decision-making is shown to be superior to fixed decision-making in terms of profit maximization. Some special cases, such as with no credit period and for non-deteriorating items, are discussed as is the influence of the time-varying demand, the rate of deterioration and the credit period on the retailer behavior. Author Affiliation: Institute of Industrial Management, National Central University, Chung-Li 320, Taiwan

Byline: Yu-Chung Tsao This paper considers an imperfect manufacturing system with machine maintenance and credit policies. The manufacturer adopts the machine maintenance when the system is in the out-of-control state. The supplier not only offers a credit period to settle the payment but also offers a cash discount to encourage the customer to pay the amount earlier. The interest earned is calculated based on retail price instead of purchase cost in most previous researches. The interest paid is not necessarily higher than the interest earned. The objective is to determine the retailer's production run time and payment time that minimise the expected total annual cost. The model can be used as a cost-saving mechanism for an engineer-to-order production system. From numerical experiments, we discuss how the machine maintenance cost, the defective cost and the percentages of defective products affect the manufacturer.