Optimal Pricing and Ordering Policies for Inventory System with Two-Level Trade Credits Under Price-Sensitive Trended Demand

In this paper, an inventory system is depicted for trended demand. Here, the demand is assumed to be price-sensitive and time dependent. Our goal is to maximize the profit of the retailer. Here, the supplier offers a fixed credit period to the retailer and the retailer also offers credit period to the customers which is more practical scenario in the market. Sensitivity analysis is performed to determine critical inventory parameters. The proposed inventory model is validated by a numerical example.