Two-echelon trade credit with default risk in an EOQ model for deteriorating items under dynamic demand

<p style='text-indent:20px;'>In today's competitive markets, offering delay payments has become a commonly adopted method. In this paper, we examine an optimal dynamic decision-making problem for retailer selling single deteriorating product, the demand rate of which varies simultaneously with on-hand inventory level and length credit period that is offered to customers. addition, risk default increases length. study, not only supplier would offer fixed retailer, but also adopt trade policy his customer in order promote market competition. The can accumulate revenue interest after pays amount purchasing cost until end by supplier. A generalized model presented determine replenishment strategies maximize retailer's total profit occurs over planning period. For objective function sufficient conditions existence uniqueness solution are provided. Some properties solutions shown find ordering policies considered problem. At some numerical examples results sensitivity elasticity analysis used illustrate features proposed model; then our concluding remarks.</p>