To increase sales and reduce default risks, a supplier may offer its retailers either: 1) a cash discount; 2) a fixed credit period M if the order quantity is greater than or equal to a predetermined quantity W. Likewise, a retailer in turn offers its customers a credit period N, which has a...

In this paper, we investigate the possible effects of a temporary price discount offered by the supplier on the retailer's replenishment policy under the premise that the capacity of the retailer-owned warehouse is limited. The purpose of this study is to develop a decision process for the...