Volume 56, Number 1, January-February 2022
|Page(s)||331 - 348|
|Published online||07 February 2022|
A deteriorating food preservation supply chain model with downstream delayed payment and upstream partial prepayment
Department of Mathematics, National Institute of Technology Durgapur, Durgapur 713209, India.
2 Department of Mathematics, The University of Burdwan, Burdwan 713104, India.
3 Department of Mathematics, Mahisadal Raj College, Mahisadal 721628, India.
4 Department of Mathematics, Y.S. Palpara Mahavidyalaya, Purba Midnapore 721458, India.
* Corresponding author: email@example.com
Accepted: 21 November 2021
This paper investigates a food supply chain model consisting of the supplier, food producer and multi-retailer of a deteriorating item under fully delay-in-payment and partial advance payment scheme. The deterioration rate of raw material is dependent on temperature and other environmental factors with respect to time. Here, the food producer prepares food after collecting the raw material from the supplier and then storing it in cold storage. The refrigeration cost is dependent on the occupied volume in the cold storage (where the products are preserved for freshness) and power consumption. The supplier offers delay-in-payment to stimulate the food producer to buy more raw material (which minimizes the holding cost and earns more revenues), whereas the food producer takes the partial advance payment on purchase cost from the retailers to ensure the order quantity. A mathematical model is developed to obtain optimal production time and the optimal number of deliveries so that the average profit of the food producer is maximum. Finally, a numerical example and sensitivity analysis of the key parameters are provided to illustrate and test the feasibility of the proposed model.
Mathematics Subject Classification: 90B05 / 90B15 / 90B25 / 90B30 / 90B50
Key words: Supply chain / deteriorating items / delay-in-payment / advance payment
© The authors. Published by EDP Sciences, ROADEF, SMAI 2022
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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