Partial Trade-Credit Policy of Retailer with Exponentially Deteriorating Items

This model considers the strategy that supplier offers retailer a full trade-credit policy whereas retailer offers their customers a partial trade-credit policy. For such assumption, retailer can earnmore profits. In this supplier–retailermodel, deterioration of products is assumed as exponential. The main purpose is to minimize the retailer’s annual total cost with finite replenishment rate. Graphical representations are given under different circumstances.The analytical derivation of the model is given to obtain the minimum cost. Some numerical examples for different cases are provided to illustrate the model.