Dual channel supply chain inventory policies for controllable deteriorating items having dynamic demand under trade credit policy with default risk

Presently in the commercial environment, because of high level market globalization and rapid increase industrialization, supply chain synchronization is playing an increasingly significant role proper management whole system including several factors at same time. In real business world, both manufacturer retailer accept credit to make their position strong, as not only strengthens relationships but also increases scale profits. The long period may demand ratebut simultaneously it can risk. We investigate a two-layer model under dynamic with maintaining decaying items controllable deterioration rates two levels trade policies. For time granted retailer, bears opportunity costs. To promote sales optimize volume, participants give periods downstream members due period, them are facing default Both work together invest preservation technologies abate rate degradation. proposed models developed for centralized decentralized scenarios. A closed form having profit maximization problem focus this study obtain optimal selling price, replenishment cycle time, technology cost, upstream profit. paper’s novelty lies introducing risk considering price sensitive customer’s dual channel inventory policy. It found that joint be able enhance total chain. Lastly, sensitivity analysis highlights influence major parameters using numerical examples.