This paper, studies the coordination of two-echelon supply chains using a credit (delayed) payment option and/or a wholesale price discount offer. We develop models for optimizing individual members’, as well as supply chain's objectives. These models lead to the determination of the retail...

As the implementation of JIT practice becomes increasingly popular, each echelon in a supply chain tends to carry fewer inventories, and thus the whole supply chain is made more vulnerable to lost sales and/or backorders. The purpose of this paper is to recast the inventory model to be more...