This work is the demonstration of a two-storage inventory model for deteriorating items, considering bi-level trade credit facility. The customers’ demand is dependent on selling price of the item and credit period offered by the retailer. Further, the items are deteriorating at a constant rate during stock-in situation but the deterioration rates of the items in different warehouse are different. According to the credit period provided by the supplier to retailer, three distinct scenarios may arise among which are discussed in detail. The corresponding optimization problems are solved with the help of three tournament-based hybrid algorithms (tournament differential evolution (TDE), tournament teaching learning based optimization (TTLBO) and tournament RAO-3 algorithms). Further, the feasibility of the proposed model is validated by considering a numerical example. Finally, the impacts of different system parameters on optimal policy are studied with the help of sensitivity experiment and its impacts are shown graphically.