Analysis of supply chain coordination with integrated contract of trade credit and quantity discount

This paper considers a supply chain consisting of a supplier and a retailer. When the supplier offers the trade credit to the retailer, the retailerpsilas order quantity and the supplierpsilas cost of capital will increase, their profit and supply chainpsilas profit will change. The integrated inventory model of trade credit and quantity discount in supply chain is developed and the order quantity and the wholesale price for coordinating decentralized supply chain is deduced, and the effect of integrated contract of trade credit and quantity discount for distributing the profit and improving the operational performance of entire supply chain is analyzed. Finally the results were analyzed by conducting numerical examples.