An inventory control system under deferrable delivery conditions

This paper explores an inventory control system for the optimal replenishment time under a trade–credit policy of type ‘α/M net T’. It is different from the existing models in that during the time the account is not settled, all generated sales revenue is deposited in an interest bearing account. At the end of this period, the retailer pays the supplier the total amount in the interest bearing account and then starts paying off the amount owed to the supplier whenever the retailer has money obtained from sales.