Impacts of two-stage deterioration on an integrated inventory model under trade credit and variable capacity utilization.

•Two-stage deterioration is involved in the integrated system with credit period.•Effective demand rate is defined to obtain supplier's average cost.•Variable capacity utilization can assess the feasibility of the integrated policy.•In-transit deterioration influences the coverage distance of supplier's capacity.•The retailer's maximum allowable order cycle for deteriorating item is obtained.