With the rapid development of economy and the increasingly intense competition in the market, businesses will adopt various sales promotion mode to increase the market share of products in order to enhance their competitiveness. Delay in payments is an important promotional tool. Delay in payments refers to customers or retailers without immediate payment when ordering goods, but the payment within the time limit prescribed by the supplier. This model can stimulate retailers to increase the ordering, and then decrease the number of replenishment for retailers and the processing cost for the supplier’s order, improving the benefit of the whole supply chain.For the two-echelon supply chain with stable market demand, by taking the supplier’s capital constraint into consideration, we establish a conditional and partial trade credit model, which actually is a supplier-Stackelberg game model led by the supplier. By analyzing two parties’ optimal decisions in the game, and introducing a price discount, we provide the supplier with a threshold for setting the model. The model can not only stimulate the retailer to make a larger order at each replenishment cycle, but also incite the retailer to make a partial payment when he is in a good financial condition. Hence, the supplier’s financial pressure is marginally relieved in this model. On the other hand, the retailer’s benefit in the traditional trade credit model does not decrease. Thus, the new model makes the supply chain more stable and a win-win outcome can be realized. We illustrate the validity of the model via a set of numerical experiments. The sensitivity analysis of the model is also provided in this paper. |