跳至主要内容

Supply Chain Finance Decision Analysis with a Partial Credit Guarantee Contract

Considering the risk of SMEs, financial institutions have been cautious about the financing of SMEs. Supply chain finance, through the integration of information chain, capital chain, logistics chain, and so on, forms an internal circulation ecosystem, which is a breakthrough to solve the financing difficulties of SEMs. In the development of supply chain finance in China, the evaluation of the enterprise’s credit, collateral is basically carried out by the bank or the bank commissioned by third parties. Therefore, the main mode of supply chain finance in China is banking-oriented model. At the same time, as the most powerful leading enterprise in the supply chain, the core enterprise can help to improve the whole supply chain with the advantage of information and credit. The credit guarantee financing model, providing credit guarantee for the downstream retailers, gradually appeared.

In the supply chain, only a small number of scholars consider the impact of financial constraints on the supply chain decisions. The research about the decision-making of three echelon supply chain, retailer-manufacturer-bank, is also less. In this paper, the credit guarantee contract is integrated into the supply chain finance model, to study the decision-making of supply chain finance.

This paper studies the decision-making problem of three echelon supply chain, retailer-manufacturer-bank, in centralized and decentralized systems. Through the calculation, it is proved that under the credit guarantee of the core enterprise, the retailer has the optimal ordering strategy, and the core enterprise has the optimal wholesale price. Besides, the optimal profit of the SCF system in centralized system is always higher than the sum of the three SCF participants’ optimal profit in the decentralized system. The retailer’s loan coefficient and the credit guarantee coefficient can narrow the optimal profit gap between the decentralized and centralized system to a certain extent. It is embodied in two aspects. On the one hand, when the retailer’s loan coefficient is consistent with the wholesale price, that the retailer’s loan amount is 0, the optimal profit of the SCF system in centralized system is the same as the sum of the three SCF participants’ optimal profit in the decentralized system. Considering that the principal and interest of the retailer are the retailer’s total sales when the supply chain financial system is balanced, i.e. the retailer’s profit is zero. Hence, the retailer’s loan coefficient can narrow the optimal profit gap between the decentralized and centralized system to a certain extent. On the other hand, the smaller λ is, the narrower optimal profit gap between the decentralized and centralized system is. Considering that the bank’s expect profit is negative when the credit guarantee coefficient is too small, the credit guarantee coefficient can narrow the optimal profit gap between the decentralized and centralized system to a certain extent. There are also shortcomings in this paper. In this paper, the decisions of parameter a and λ are not taken into account in the game model, but the influences on the game result are analyzed. On the other hand, this paper considers a simpler supply chain model. The actual situation is that supply chain finance financing is facing a more complex supply chain system, and involves dynamic evolution.

Article by Yueliang Su and Baoyu Zhong,from South China University of Technology, Guangzhou, China


Full access: http://mrw.so/LnGxX

评论

发表评论

此博客中的热门博文

Does Immigration Promote the Investment of the Monopolistic Firm?

In the present paper, we examine the effect of increasing uncertainty of immigrants’ growth on the optimal timing of investment of a firm that has a monopolistic power over the labor market. It is revealed that when the uncertainty of immigrants’ growth is more than a threshold level, increasing uncertainty of immigrants’ growth accelerates the optimal timing of firms’ investment and enhances the economic growth, even if the uncertainty of immigrants’ growth is formulated by the geometric Brownian motion, which is in sharp contrast to the standard result that an increase in the uncertainty postpones the optimal timing. With an increase in the immigrants over the past ten years, workforces in the host countries have been growing significantly to the extent that the immigrants represent 70% of the increase in the workforce in Europe, and 47% in the United States as OECD indicates. In the present paper, we attempted to investigate the effect of increased uncertainty caused by the growi...
发表评论
阅读全文

Education Policy Implementation: A Mechanism for Enhancing Primary Education Development in Zanzibar

Education is one of the fundamental rights of individuals; therefore, the government of a country needs to develop and strengthen educational policy and quality as well as to ensure that everyone has equal access to basic education. The improvement of access and quality of education in the world is becoming as an essential factor in development, whereas the basic education (primary school), is acknowledged as a foundation of the higher educational development for every country. To fulfill this goal, governments introduce several policies and procedures; however, it requires some reforms and participation from the politician, policymakers, and other stakeholders to re-examine educational policy so that it can lead to multiplication and betterment of the reforms. Educational reforms actually focus on accountability. A positive educational development and reform is very challenging and needs more effort and strategy on how to use and utilize the resources effectively as such it can achie...
发表评论
阅读全文