Abstract
Technology drives many fields to improve the quality of items during the supply of the products. Despite proficient planning in the industrial system and the presence of sophisticated techniques, there may be some defective items in the lots. This paper deals with the inventory model that determines economic order quantity (EOQ) with learning effect for decaying defective quality items under the inflationary condition and credit financing policy. The objective of the work is to analyze the impact of credit financing policy, learning, and inflationary condition on the order quantity and retailer profits. Results revealed that the trade-credit policy will be beneficial for the retailer. Conclusively, sensitive analysis has been presented to understand the robustness of the models.