Credit incentives are crucial tools in supply chain and inventory management. Using this strategy, the buyer could pay the purchase cost with a delay. Therefore, it will increase the order quantity and the buyer's satisfaction. This paper investigates the economic production model considering the incentive conditions for supplier credit, variable demand, deteriorating items, and shortages. It is assumed that the supplier sends the ordered items to the manufacturer on time; however, he receives the purchase price of the products after a permitted delay. Furthermore, the deterioration rate is a fixed percentage of the inventory level. Therefore, a nonlinear programming model is proposed for figuring out replenishment policy by minimizing the total inventory cost. The best replenishment policy is examined by employing Wolfram Mathematica. Moreover, a genetic algorithm is suggested due to the model's nonlinearity. Numerical analyses show that while the results do not significantly differ, the proposed GA reaches near-optimum solutions in less CPU time.
