Two-Level Trade Credit in Supply Chain Management Quadratic With Fix Life Under Quadratic Demand

Abstract

In this paper, supply chain inventory models are formulated with quadratic demand. The demand increases linearly for times when a product is launched and when with new substitute available demand decreases exponentially. The inventory of every player is subject to deteriorate after a fixed life time. The deterioration rate under the retailer is lower in comparison to manufacturer. Under two level trade credit, manufacturer offers delay period to settle the account to the distributor and the distributor also offers some credit period to the retailer. Interest is charged if the account is not settled in a given stipulated time period. The cost of the integrated inventory system is minimized with respect to a number of shipments from the manufacturer to the distributor and the distributor to the retailer and each player's replenishment times. A solution procedure is worked out to obtain the best possible decision for the player of the supply chain. The results are validated with the numerical examples for different scenarios. Managerial decisions are suggested.