Abstract
Supply chain finance is an efficient method to solve SME’s financing problem. A core issue is to simulate the supply chain finance system’s real operations. To solve the problem, this paper designs a simulation model for supply chain finance based on Simon’s bounded rationality with multiagent simulation technique instead of absolute rationality. The influences of the behaviors of bank, SME and warehousing company on credit risk of the supply chain finance are simulated and managerial insights are given. The research can help to reduce credit risk of bank loan while increasing the supply chain system’s benefit.
Highlights
Chain finance is a financial service that using controllable credit risk of the whole supply chain, instead of the uncontrollable credit risk of the SME, to solve SME’s financing problem
In the aspect of risk management, Busch [2] summed up the risk congeries characteristic of supply chain finance’s external environment and inside subjects, and put forward that management cost can be greatly reduced if using suitable risk control means
Modeling and simulating technique based on agent has been applied extensively in the field of economic, and researches about multi-agent game simulation have scored great achievements, but these theories have not yet combined with the risk management of the supply chain finance
Summary
Chain finance is a financial service that using controllable credit risk of the whole supply chain, instead of the uncontrollable credit risk of the SME, to solve SME’s financing problem. It is observed that applying the game theory in supply chain finance becomes a new research hotspot, this method clearly describes the interests of supply chain finance’s business models. Modeling and simulating technique based on agent has been applied extensively in the field of economic, and researches about multi-agent game simulation have scored great achievements, but these theories have not yet combined with the risk management of the supply chain finance. It can be deeply studied, and in this paper, these models are reviewed
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