Supply chain inventory model for perishable items under delayed payment

Abstract

This paper attempts to create a supply chain inventory model for perishable goods that simultaneously considers delayed payment and shortage. For this purpose, a two-layer supply chain system was described, and a perishable goods inventory model was created for two types of grace periods. Then, the optimal distribution cycle and quantity were computed in the mode of single ordering and multiple distributions. Finally, the author investigated the effect of unit shortage cost, deterioration rate and grace period on the total cost of the supply chain. The model was validated through a case study. The research findings provide valuable references for inventory management of supply chain enterprises.