Vendor-buyer ordering policy when demand is trapezoidal

A joint vendor-buyer strategy is analyzed which is beneficial to both the players in the supply chain. The demand is assumed to be trapezoidal. It is established numerically that the joint venture decreases the total cost of the supply chain when compared with the independent decision of the buyer. To entice the buyer to order more units, a permissible credit period is offered by the vendor to the buyer. A negotiation factor is incorporated to share the cost savings.