In the present study our objective is to formulate
a inventory model with fully backlogged shortages under the permissible delay in payments by not only exploring the
impact interest earned from revenue generated after fulfill the shortages at the beginning the of the cycle but also to determine
the pay off time for the retailer. A cost minimization problem for different financial scenario, have been presented. The proposed
model jointly optimizes the retailer replenishment cycle and stock-in period. Finally, the findings have been illustrated with the
help of the numerical example and effects of certain parameters on the retailer ordering policy have been analyzed.