Logistics, Supply Chain and Financial Predictive Analytics

 

Game theory is a powerful mathematical tool, which studies the capacity of the players. This theory plays a significant role in the area of supply chain connected problems whose purpose is to construct supply chain policies under numerous assumptions with different perspectives. These policies demonstrate coordination between several channels in the supply chain to get effectual outcome. Now a days, the maximum supply chain industries are using credit period policy to improve the profit of both the partners of the supply chain. The trade credit policy is generally offered to the buyer by the seller which is authorized settlement between buyer and seller for the late payment. Many researchers explored their study in this area. Hayley and Higgins [1] studied the buyer’s lot size problem having a trade credit contract by assuming a fixed demand and showed that lot size is not affected by the length of trade credit period. Kim et al. [2] formulated a mathematical model to find out the optimal trade credit period with the assumption that the seller’s price is fixed. Hwang and Shinn [3] showed in his study that the order quantity of the buyer fluctuates with the length of the trade credit period by considering demand, price sensitive.