Coordination of a single-manufacturer/multi-buyer supply chain with credit option

One of the important issues in supply chain management is the coordination between manufacturers and multi-buyer. A single manufacturer supplying a product to single buyer is hard to find in today's business environment. This paper investigates a coordination problem in a single-manufacturer and multiple heterogeneous buyers situation. Two typical cases are explored here: (i) ex-site delivery case considering manufacturer dominance where manufacturer with larger production lot size delivers the item to the group of heterogeneous buyers at common replenishment time through common carrier and (ii) ex-factory delivery case with buyer's dominance and common replenishment time for delivery.