Abstract
In practice, most of the suppliers are willing to offer the retailer a certain credit period without interest during the permissible delay period or offer a cash-discount to promote market competition. Huang [2005. International Journal of Systems Science 36, 801-807] developed an inventory model to investigate the buyer's optimal cycle time and optimal payment time under the supplier's trade credit policy and cash-discount policy. In this paper, we extend Huang's model by considering that the capacity of the buyer's warehouse is limited and the goods are perishable. An algorithm is developed to determine the optimal cycle time and numerical examples are given to illustrate the results.
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