Production rate and lot-size dependent lead time reduction strategies in a supply chain model with stochastic demand, controllable setup cost and trade-credit financing

This study explores simultaneous reduction strategies of lead time and setup cost in a two-stage supply chain model under trade-credit financing. Lead depends on variable production rate lot size. It consists setup, production, transportation which are shortened to reduce time. Although double safety factors considered avoid stock-out; but still backorders take place as the demand during is stochastic. Setup reduced by including an extra investment cost. In addition, vendor offers fixed credit period buyer settle account. The objective minimize integrated expected total optimize order quantity, number deliveries, time, cost, factor for first batch, rate. A multi-variable optimization technique used these purposes. Furthermore, numerical example together with managerial insights provided establishment applicability proposed model. results show that introduction financing along more beneficial means reduction.