INTEGRATED PRICING, ORDERING, AND PAYMENT DECISIONS WITH NON-INSTANTANEOUS REPLENISHMENT UNDER TWO-PART TRADE CREDIT

In today's business environment, many upstream companies offer a two-part trade credit (r/t(1), net t(2)) to downstream companies. In many situations, the goods may also be delivered from the vendor to the buyer in small, frequent batches during the replenishment period. This situation is most commonly found in mass ordering with a long-term contract. This paper deals with the problem of determining the retailer's price, ordering, and payment policies simultaneously under two-part trade credit with non-instantaneous replenishment. This study develops an algorithm to solve this problem. Computational analysis demonstrates that the results of the proposed model are consistent with economic insights.