Optimal replenishment policy in the EPQ model under two-part trade credit

In this paper, we extend Zhou et al. (2013), which discussed inventory models with the two-part trade credit contract under the EOQ model, to a more realistic case that the inventory model is under the EPQ model in which the manufacturer replenishes its inventory with finite rate, just like the real-life condition. We model the manufacturer´s inventory system as a cost minimization problem to determine the manufacturer´s optimal replenishment cycle time, under cash discount and two-part trade credit within the EPQ framework. Furthermore, we characterize the optimal replenishment policy for the manufacturer.