A new dual-channel supply chain scenario under credit sales transactions is examined in this study, in which the retailer and e-tailer compete for the credit length given to the final customers. In the face of deterministic demand, where market demand depends on both the product’s price and the credit duration, this study illustrates the trade credit coordination mechanism of the supply chain. According to this article, the wholesale price is influenced by the product’s retail and online prices. Profits are maximized under centralized decision-making models. According to the research, a trade credit arrangement would boost sales throughout the supply chain and mitigate the financial stress on low income clients. Customers are encouraged to place orders when trade credit is used. This study suggests that the dual-channel supply chain benefits from the fierce competition in credit sales.
Paul et al. (Mon,) studied this question.