Retailer´s Optimal Replenishment Policy with Defective Products under Cash Discount and Two-Level Trade Credit

In this paper, we want to investigate the retailer´s optimal replenishment policy with defective items under cash discount and two levels of trade credit policy. Mathematical models have been derived for determining the retailer´s optimal inventory cycle time so that the annual total profit is maximized. Finally, numerical examples are given to illustrate the theorem and obtain some managerial phenomena.