Retailer’s inventory policy for deteriorating items under partial trade credit policy

This paper proposes a mathematical model for retailer’s optimal inventory policy for deteriorating items under the conditions of permissible delay in payment in supply chain coordination. In this paper, supplier offers full trade credit to his/her retailer and the retailer, in turn, provides the partial trade credit to his/her customer. This research article helps the retailer determine the optimal cost, more accurately. The primary objective is to minimize the retailer’s cost and to determine the optimal inventory policy for retailer. The results of this article generalize some already published results by incorporating deterioration on inventory items. We use some numerical examples to analyze the effects of various parameters on retailer’s inventory policy.