In this paper, we consider an inventory model with noninstantaneous
delivery under trade credit and logistics risk.
The contributions of this paper to the relevant literature and
managerial decision-making are now summarized. First, this is
the first study to incorporate logistic risk considerations into
the inventory under trade credit. Second, we solve the problem
from both perspectives of risk-neutral and risk-averse. We
not only suggest optimal properties, but also develop solution
procedures for solving the problems described. Third, the riskaverse
solution method limits the solution space to the set
of cycle times, which guarantees an upper bound of defective
products under contingency. This risk management operations
research technology is very useful for cases of low-probability
high-consequence contingency events.