What is Weibull Distribution

In today's competitive and global business scenario there is always a race to boost demand of your product over others. This can be achieved by different means and allowing permissible delay in payments is one of them. Researchers have proposed number of inventory models with trade credit that actually help to understand effect of trade credit on total profit and overall demand. This paper proposes a two – echelon trade credit where retailer receives credit period from the manufacturer and offer it to end customers appropriately to raise demand. Proposed inventory model assumes quadratic demand and subjected to time dependent deterioration. Ordering cost is considered lot – size dependent whereas holding cost has been taken time dependent. In this model profit is maximized considering cycle time as a decision variable. Sensitivity analysis of crucial inventory parameters and numeric examples are discussed in detail. Outcome of this model can be applied to a huge range of products like readymade garments, fashion accessories, electronics, furniture and home furnishing products.