This model considers the strategy that supplier offers retailer a full trade-credit policy whereas retailer offers their customers a partial trade-credit policy. For such assumption, retailer can earn more profits. In this supplier–retailer model, deterioration of products is assumed as exponential. The main purpose is to minimize the retailer’s annual total cost with finite replenishment rate. Graphical representations are given under different circumstances. The analytical derivation of the model is given to obtain the minimum cost. Some numerical examples for different cases are provided to illustrate the model.
|Number of pages||26|
|Journal||International Journal of Applied and Computational Mathematics|
|Publication status||Published - 2015 Sep 1|
Bibliographical noteFunding Information:
Acknowledgments The authors wish to thank the reviewers for their very helpful comments and suggestions to improve the paper. The research of second author was supported by Rajiv Gandhi National Fellowship (F1-17.1/2012-13/RGNF-2012-13-ST-WES-15873). This work was supported by the research fund of Hanyang University (HY-2014-N, Project number 201400000002202) for new Faculty members.
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All Science Journal Classification (ASJC) codes
- Computational Mathematics
- Applied Mathematics