Abstract:

Considering a supply chain consisting of one supplier and one retailer, a 3PL financing pricing model was set up under the condition of random demand. Based on the supplier’s permission of delayed payment and the 3PL company’s provision of an inventory impawn financing service, the retailer’s decision-making of its optimal order quantity and reorder point as well as the 3PL company’s optimal decision-making problem of providing the finance service was studied. A numerical example was given to analyze the effectiveness of the proposed model. It is shown that both retailer and the 3PL company can achieve their optimal goals by using the proposed model.

Key words:  random demands; delayed payments; inventory impawn financing; pricing