A note on “Seller’s optimal credit period and cycle time in a supply chain for deteriorating items with maximum lifetime”

• This paper generalizes Wang et al. (2014) under some mild conditions.
• Both optimal trade credit and cycle time not only exist but also are unique.
• Sensitivity analysis as regards key parameters is performed in rigorous discussions.

In 2014, Wang et al. (2014) extended the model of Lou and Wang (2012) to incorporate the credit period dependent demand and default risk for deteriorating items with maximum lifetime. However, the rates of demand, default risk and deterioration in the model of Wang et al. (2014) are assumed to be specific functions of credit period which limits the contributions. In this note, we first generalize the theoretical results of Wang et al. (2014) under some certain conditions. Furthermore, we also present some structural results instead of a numerical analysis on variation of optimal replenishment and trade credit strategies with respect to key parameters.