Supply Chain Networks Design for Deteriorating Items under Advance Payment and Backordering

Advance payment has gained widespread use by businesses as a proactive measure to protect against unforeseen events. This paper designs a supply chain network for deteriorating items under advance payment and partial backordering, as well as for a situation in which shortages are not a factor. In each case, the solution to the mathematical model is presented for minimizing the total network cost. The models are illustrated with numerical examples, and sensitivity analysis is performed by varying the involved parameters. The computational results indicate that the greater the number of equal-sized parts by which we divide the prepayment period, the less the total network cost is.