Abstract

The integrated inventory policies of single-supplier single-buyer are studied under order-dependent trade credit terms. The units in inventory are subject to constant rate of deterioration. The demand rate is assumed to be price-sensitive stock-dependent. Under order-dependent trade credit scenario, the buyer is eligible for settlement of account at allowable delay period if the order quantity is larger than that of pre-specified order by the supplier. The objective is to maximize joint profit of the supply chain with respect to retail price of the unit and cycle time and number of shipments from the supplier to the buyer. The numerical example is given to illustrate the mathematical analysis. Sensitivity analysis is carried out to deduce managerial insights

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