Managing Green-Oriented Demand and Reliability in Inventory Systems Using Dual Level Trade Credit Policies

This study explores optimal production and inventory strategies for environmentally friendly products within a dual trade credit framework. With consumer demand increasingly shifting toward sustainable products and rising market competitiveness, companies face the dual challenge of maintaining product quality while offering competitive pricing. This research models a deteriorating inventory system in which production exceeds immediate demand to avoid shortages. Trade credit is introduced as a strategic mechanism to stimulate customer demand, and its influence on overall system performance is analyzed. The model integrates reliability as a key production consideration, enhancing operational efficiency and product quality.