Under　the　combined　effects　of　inventory-level-dependent　demand　(ILDD)　and　trade　credit,　the　retailer　is　able　to　order　more　quantities　to　stimulate　market　demand.　However,　from　the　supplier＇s　perspective,　two　important　issues　are　lacking　sufficient　attention.　First,　during　the　credit　period,　the　retailer＇s　higher　order　quantities　imply　increases　in　both　the　retailer＇s　account　payable　and　the　supplier＇s　opportunity　cost　of　capital.　Second,　given　the　supplier＇s　fixed　production　rate,　the　increased　market　demand　may　drive　the　capacity　utilization　to　be　variable.　Thus,　by　formulating　a　supplier-dominated　system,　this　paper　incorporates　trade　credit　limit　(TCL)　to　address　its　effects　on　optimal　policies　vis-à-vis　the　item　with　ILDD.　Specifically,　three　indicators　can　be　proposed　to　reveal　which　type　of　financing　policy　the　retailer　should　choose.　Moreover,　based　on　TCL,　the　supplier　can　effectively　manage　the　retailer＇s　order　quantity　and　the　corresponding　account　payable.　Additionally,　the　retailer＇s　maximum　allowable　order　quantity　is　developed　to　ensure　that　the　supplier　can　supply　the　retailer＇s　order　quantity　on　time.　Furthermore,　when　the　effects　of　ILDD　become　more　significant,　the　manufacturer　will　reduce　the　maximum　allowable　order　quantity　to　control　the　retailer＇s　order　incentive.　©　2023　China　Science　Publishing　&　Media　Ltd.