The single-vendor single-buyer integrated production-distribution inventory system has been an object of study for a long time, but little is known about the effect of investing in reducing setup cost and trade credit financing on the integrated inventory models. In this study an integrated production-distribution inventory model is presented for a single-vendor single-buyer supply chain with the consideration of vendor offers permissible delay period to buyer, buyer review his inventory using continuous review policy, vendor setup cost can be reduced through furthe investment, controllable
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