Research on lending decision and optimization of supply chain finance for commercial banks based on financial constraint

Abstract

Supply chain finance is the integration of logistics, fund flow and information flow. Previous researches mostly analyzed the problem of financing decision in a cash-constrained supply chain from the point of financing companies in the supply chain. The paper studies a cash-constrained and two-stage supply chain system including a single manufacturer and a retailer from a new perspective of commercial banks and other lenders, aimed at commercial banks and other financial institutions to provide financing services to the upstream and downstream enterprises in the supply chain. The problem of commercial banks' financing decision is studied through establishing mathematic optimizes models under the framework of the newsvendor model. Then the results of analog simulation show that the proposed model is feasible and accurate. The main contents and results are as follows: the numerical study indicates that if one of the firms in the supply chain has sufficiently low cash, joint decision referred to supply chain financing may be better not only for the lender but for the retailer and manufacturer as well. It is an important guiding significance in the practical operation of commercial banks' financing services for cash-constrained supply chains.