A resilient hybrid payment supply chain inventory model for post Covid-19 recovery. (July 2021)

• Record Type: Journal Article
• Authors: Mashud, Abu Hashan Md; Hasan, Md. Rakibul; Daryanto, Yosef; Wee, Hui-Ming
• Is Part Of: Computers & industrial engineering. Volume 157(2021)
• Publication Date: 2021-07
• Subjects: Post Covid-19 recovery -- Disruption -- Hybrid payment -- Inflation -- Preservation technology -- Price-sensitive demand; Engineering -- Data processing -- Periodicals; Industrial engineering -- Periodicals; 620.00285
• DOI: 10.1016/j.cie.2021.107249
• Languages: English
• ISSNs: 0360-8352

Abstract

Abstract: The present Covid-19 pandemic causes disruptions to markets and businesses in general, affecting the supply chain inventory system most significantly. This work investigates a hybrid payment inventory model considering inflation, cash discount, price-sensitive demand, and preservation technology investment for non-instantaneous deteriorating products. Due to the economic downturn, a hybrid payment scheme composed of multiple prepayments and a delay in payment is proposed to facilitate post Covid-19 recovery. The proposed model is one of the first models to consider a hybrid payment scheme in view of the Covid-19 pandemic, and to provide guidelines to retailers in planning the selling price, replenishment period, and preservation investment in view of the pandemic situation. The hybrid payment policy is suggested during the financial crisis to sustain orders from a retailer to the supplier and from the consumers to the retailer. During the supply disruptions, two cases for shortages and without shortages are studied. The nonlinear model is solved by Lingo 17 software. This study shows the effect of advance and delayed payments on the retailer's total profit. It also shows that the total profit is extremely delicate to the inflation rate. The numerical examples illustrate the inventory model for different scenarios. Sensitivity analysis is carried out to provide managerial insights to management during post Covid-19 recovery.