An EOQ model under retailer partial trade credit policy in supply chain

The main purpose of this paper is to investigate the retailer’s inventory policy under two levels of trade credit to reflect the supply chain management situation. In this paper, we assume that the retailer has the powerful decision-making right. So, we extend the assumption that the retailer can obtain the full trade credit offered by the supplier and the retailer just offers the partial trade credit to his/her customer. Then, we investigate the retailer’s inventory system as a cost minimization problem to determine the retailer’s optimal inventory policy under the supply chain management. Two easyto-use theorems are developed to efficiently determine the optimal inventory policy for the retailer. We deduce some previously published results of other researchers as special cases. Finally, numerical examples are given to illustrate the theorems and obtain a lot of managerial phenomena. r 2007 Elsevier B.V. All rights reserved.