Trade credit competition between two retailers in a supply chain under credit-linked retail price and market demand (Q476272)

The authors introduce a framework of competition in a supply chain dealing with trade credits offered by two retailers to their customers. To develop their model, they consider different possible relationship among trade credits offered by the manufacturer and the retailers and the time when each retailer receives the last payment from his customer. A numerical study shows that a two-level trade credit financing can increase profits for both the manufacturer and the retailers and for the whole supply chain.