Note on: Managing multi-echelon multi-item channels with trade allowances under credit period

In the recently published paper [Tsao, 2010, Managing multi-echelon multi-item channels with trade allowances under credit period. International Journal of Production Economics 127, 226-237], a supplier-retailer inventory system with multiple items is studied where the supplier provides an interest-free credit period for the retailer to compensate him for making promotional efforts to stimulate the demand for each item. However, as shown in this note, there exist some nontrivial flaws in Tsao's paper. We identify and correct these flaws and develop efficient algorithms to derive the optimal solutions. (C) 2012 Elsevier B.V. All rights reserved.