Abstract
In order to solve the problem of how to choose a financing strategy for supply chain enterprises with financial constraints, including the manufacturer and the retailer, this paper puts forward two financing strategies in the bilateral supply chain with uncertain output and certain demand. The two financing strategies are the noncollaborative financing (finance from a bank separately (FBS)) and the collaborative financing (finance from a bank uniformly (FBU)). It derives the production order formula of the supply chain enterprises under financial constraints. Under the complete information, according to this formula, it analyzes how the bank prices the loan interest rates and finds the optimal decisions under the two financing strategies. The following results are found: (1) The manufacturer’s planned output is negatively correlated with the bank’s loan interest rate. The increased interest rates do not necessarily lead to the increased bank’s loan profits. (2) The bank’s loan profit is higher, when the supply chain enterprises choose the FBS strategy. (3) The FBU strategy does not necessarily make the profits of the manufacturer and the retailer better. It is affirmative only if some parameters in the supply chain meet certain conditions. The above-mentioned conclusions supply a policy guiding the supply chain enterprises with financial constraints to make a choice of the financing strategy.
Highlights
In recent years, the research on supply chain operation and coordination in an uncertain environment has attracted more and more attention from academic and business circles. ere is more concern about supply chain operation under the condition of uncertain demand [1,2,3], but in a customer-centric market economy, there are still many enterprises that take order-based production [4]
After an order is placed by a downstream enterprise, the manufacturer cannot guarantee that the output will match the order volume. erefore, in reality, the supply chain with output uncertainty and demand determination is still widespread, and it often faces the problem of capital constraints
In order to solve the above problems, this paper studies the bilateral supply chain with the uncertain output and certain demand. is supply chain consists of a manufacturer and a retailer
Summary
The research on supply chain operation and coordination in an uncertain environment has attracted more and more attention from academic and business circles. ere is more concern about supply chain operation under the condition of uncertain demand [1,2,3], but in a customer-centric market economy, there are still many enterprises that take order-based production [4]. Under the FBU strategy, all financing enterprises in the bilateral supply chain rely on the overall strength and credit level of the core enterprises or third-party logistics enterprises in the supply chain to obtain bank loans. Upstream and downstream financing enterprises in the supply chain have obtained the bank loans through the FBU strategy. In a bilateral supply chain with the uncertain output and the certain demand, the financing enterprises could choose either the FBS strategy or the FBU strategy to get the bank loans under the financial constraints. Is supply chain consists of a manufacturer and a retailer In an order, both of them are under the financing constraints, and both of them can choose the FBS or the FBU strategy for the bank loans. In the case that the bank’s optimal loan interest rate to the manufacturer is at its maximum, and some parameters in the supply chain meet a certain relationship, the FBU strategy is more beneficial to the supply chain. is is contrary to our usual intuition that the FBU strategy is more beneficial to the supply chain enterprises
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