The optimal pricing and ordering policy for an integrated inventory model when trade credit linked to order quantity

摘要: Abstract In traditional inventory models, it is implicitly assumed that the buyer must pay for purchased items as soon they have been received. However, in many practical situations, vendor willing to provide with a permissible delay period when buyer’s order quantity exceeds given threshold. Therefore, incorporate concept of vendor–buyer integration and order-size-dependent trade credit, we present stylized model determine optimal strategy an integrated system under condition credit linked quantity, where demand rate considered be decreasing function retail price. By analyzing total channel profit function, developed some useful results characterize solution iterative algorithm find price, numbers shipment per production run from buyer. Numerical examples sensitivity analysis are illustrate theoretical results, managerial insights also obtained.