Impact of trade credit on inventory models for Weibull distribution deteriorating items with partial backlogging in two-warehouse environment

Abstract

This article analyses a two-warehouse inventory system for deteriorating items under trade credit policy. In the present model, the deterioration rate of items followed Weibull distribution. Shortages are allowed and are partially backlogged. In this work, a retailer who purchases the items enjoys a fixed credit period offered by his/her supplier and, in turn, also offers a credit period to his/her customers in order to promote the competition. Several numerical examples are provided to illustrate the behaviour of the model and highlight some managerial insights.