The optimal cycle time for deteriorating items under retailer partial trade credit policy in supply chain

Most dominant retailers can obtain the full trade credit offered by the supplier but these retailers only off er the partial trade credit to their customers. Thus, Huang and Hsu [2008. International Journal of Production Economics 112, 655-664] investigated the retailer's inventory policy under two levels of trade credit to reflect the supply chain management situation. In their model, it is assumed that the retailer receives the payment from the last customer at the time N and the goods are not perishable. In this paper, we extend the work of Huang and Hsu (2008) by taking the deterioration rate into account and modifying the assumption of payment receiving time. We change original time N, which is the payment of the last customer, to the correct time N + T. Two theorems are developed to determine the optimal cycle time and numerical examples are given to illustrate the results.