Abstract: This paper proposes the Stackelberg game model to get the deteriorating items optimal trade credittactic as well as ordering policy subject to the single vendor buy er supply chain under the condition of permissible delay in payments,in order to maximize annual net profit.Finally we develop analgorithm to solve this problem.Numerical examples are shown toil lustrate the effect of sensitivity of inter estrates on trade credit length,supplier's profit,retailer's profit,retail price,order cycle and quantity in the paper,which of ferguidance for supplier's trade strategies and retailer's inventory policy.

Key words: deteriorating products, delay in payments, stackelberg game, sale policy, ordering policy