Optimal retailer’s replenishment decisions in the EPQ model under two levels of trade credit policy

The main purpose of this paper is to investigate the optimal retailer’s replenishment decisions under two levels of trade credit policy within the economic production quantity (EPQ) framework. We assume that the supplier would offer the retailer a delay period and the retailer also adopts the trade credit policy to stimulate his/her customer demand to develop the retailer’s replenishment model under the replenishment rate is finite. Furthermore, we assume that the retailer’s trade credit period offered by supplier M is not shorter than the customer’s trade credit period offered by retailer N (M ? N). Since the retailer cannot earn any interest in this situation, M < N.