We explore the issue of supply chain coordination by considering trade credit and its risk. It shows that, in a retailer–manufacturer system, the manufacturer may deliver less than the retailer׳s order quantity when the payment is delayed, and the manufacturer׳s risk aversion makes this...

This study models a finite horizon inventory problem for deteriorating and fashion goods under trade credit and partial backlogging conditions. Demand may vary with price or time. The supplier can extend credit to the retailer. As a result, the retailer does not have to pay for goods immediately...