Manufacturer-retailer Inventory Model for Deteriorating Items with Fixed Lifetime and Two-level Trade Credit having Credit-linked Price-dependent Demand

Supply chain system containing two-level i.e. single-manufacturer and single-retailer is considered, assuming the time varying deterioration rate. The units deteriorate in the warehouse. The system allows the offering of two-level credit. Demand function is the increasing function of retailer’s credit offered to the consumers. Under the agreed contract, manufacturers offer trade credit in the form of delay payment to the retailers such that profit will be shared jointly. Modelling of mathematical computation is done with a view to maximize total joint profit in the supply chain. Next, numerical examples are discussed, followed by sensitivity analysis to validate the outcomes of solution procedure.