Trade credit, a widely adopted business practice, allows deferred payments and supporting cash flow. In competitive markets, retailers leverage trade credit to attract consumers, though it complicates inventory management, particularly for products with longer expiry periods requiring additional storage. Understanding the inverse relationship between price and demand, along with the influence of advertising, this study aims to: 1) examine the impact of supplier-to-retailer and retailer-to-consumer trade credit on inventory and financial outcomes; 2) explore the interplay between pricing, demand, and advertising; 3) develop an algorithm to optimise advertisement frequency alongside traditional optimisation methods; 4) optimise advertisement frequency, selling price, and cycle time to maximise retailer profits; 5) conduct sensitivity analyses on key parameters. For TechTrends case study, the research seeks to establish a comprehensive framework for improving trade credit strategies, optimising inventory management, and supporting sustainable growth for fashionable electronics. Received: 22 March 2024; Accepted: 11 March 2025
Jani et al. (Thu,) studied this question.
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