Supplier-retailer coordination with trade credit for deteriorating items for FMCG.

In the prevailing market conditions, an integrated approach of the supplier and the retailer is required for successfully managing the supply chains. The present time also focuses on the requirement of trade credit as well, as it's been proved till now that it is for the profit of both the supplier and the retailer. The inventories deteriorate with time, especially chemicals in the laboratory, thin films when exposed to different atmospheric forces, the items having a shorter shelf life, the items like fruits, food products, perishable products, consumer goods, and fashionable items (car accessories, mobile phones, clothes), pieces of machinery are also exposed to wear and tear. The research work focuses on a mathematical model with constant demand, deteriorating inventory, supplier – retailer coordination for permissible delay in payments, and the retailer's interest earned when the replenishment cycle is shorter than the credit period rate, for various types of inventories related to different mechanical and engineering industries and even for fast-moving consumer goods or consumer packaged goods. Thus the paper attempts to calculate the total cost of the retailer with different parameters. A numerical example is also discussed and sensitivity analysis at the last completes the paper. [ABSTRACT FROM AUTHOR]