scholarly journals MODELING AND SIMULATION FOR SUPPLY CHAIN FINANCE UNDER UNCERTAIN ENVIRONMENT

2020 ◽  
Vol 26 (4) ◽  
pp. 725-750 ◽  
Author(s):  
Wei Jin ◽  
Chengfu Wang
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Stackelberg Game ◽  
Hybrid Strategy ◽  
Accounts Receivable ◽  
Capital Shortage ◽  
Supply Chain Finance ◽  
Bankruptcy Costs ◽  
Financial Characteristics

This paper studies the role of factoring in a bilateral supply chain, where both the supplier and retailer are financially constrained. Applying the stylized Stackelberg game, we analytically present that the supplier’s capital shortage limits the advantage of trade credit provided to the retailer. To overcome this limitation, we design a hybrid strategy composing of trade credit and factoring, and then investigate how the supplier uses factoring strategy to achieve the best performance. Analytical and numerical results show that: (1) each supply chain partner can benefit from factoring, and the benefits depend on operational and financial characteristics; (2) in a fairly priced factoring market, bankruptcy costs reduce the benefits of factoring, but does not change the dominance of full factoring; (3) in a strategically priced factoring market, partial factoring may dominate full factoring. Managerially, our study implies that a supplier may benefit from dividing his accounts receivable when facing a factor with a strong pricing ability.

Supply Chain Financing Model: Based on China's Agricultural Products Supply Chain

2013 ◽  
Vol 380-384 ◽  
pp. 4417-4421
Author(s):  
Ting Rui Wang ◽  
Qiang Gao Lan ◽  
Yong Ze Chu
Keyword(s):  
Supply Chain ◽  
Agricultural Products ◽  
Accounts Receivable ◽  
Agricultural Enterprises ◽  
Supply Chain Finance ◽  
Accounts Payable ◽  
Supply Chain Financing ◽  
Long Time ◽  
Financing Model ◽  
Inventory Financing

Difficulty in financing is a general problem faced by farmers and small and medium-sized agricultural enterprises for a long time because of the lack of guarantees in china. Supply Chain Finance (SCF) is generating much attention as a means of substituting for lower credit availability. For the purpose of promoting chinas rural financing products and service innovation by using SCF, this article studies agri-supply chain financing model and financing products. The result showed that agri-supply chain can extend credit to the upstream and downstream enterprise through order financing, accounts receivable financing, financing warehouse, accounts payable financing, prepaid accounts financing and inventory financing etc.

Strategic Cost Management in the Supply Chain

2020 ◽  
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Return On Investment ◽  
Cost Management ◽  
Strategic Cost Management ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Definition Of ◽  
The Cost

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.

Optimal decisions and coordination strategy of a capital-constrained supply chain under customer return and supplier subsidy

2018 ◽  
Vol 13 (2) ◽  
pp. 278-301 ◽  
Author(s):  
Gongbing Bi ◽  
Ping Chen ◽  
Yalei Fei
Keyword(s):  
Supply Chain ◽  
Trade Credit ◽  
Stackelberg Game ◽  
Modeling Framework ◽  
Content Type ◽  
Initial Capital ◽  
Joint Operations ◽  
Fixed Proportion ◽  
Customer Returns ◽  
Credit Financing

Purpose The purpose of the paper is to explore impacts of financing and supplier subsidy on capital-constrained retailer and the value of returns subsidy contract under a situation where the retailer makes joint operations and finance decisions. Design/methodology/approach This paper considers a two-level supply chain, including a retailer and a supplier. Facing problems of capital constraints and even customer returns, the newsvendor-like retailer orders from a well-capitalized supplier. The supplier allows the retailer a delay in payment and provides a subsidy contract to alleviate its problems if it is profitable. Considering their difference of initial capital status, the retailer is assumed to be Follower of Stackelberg Game and the supplier is the Leader. Findings The supplier return subsidy contract has some merits for both of partners in the chain. And it does not coordinate the supply chain when the retailer has enough initial capital; however, when the retailer is capital constrained, it does. In addition, the retailer’s initial capital level significantly affects the supplier’s subsidy decision. Research limitations/implications Return rate is simplified to a fixed proportion of completed demand. In addition, trade credit is only financing source in this paper, and other types of financing methods, such as bank credit, can be taken too. Originality/value This paper first incorporates trade credit financing and customer returns into a modeling framework to investigate the capital-constrained retailer’s joint operations and finance decisions and the value of supplier’s subsidy contract.

scholarly journals Supply Chain Coordination under Trade Credit and Quantity Discount with Sales Effort Effects

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Zhihong Wang ◽  
Shaofeng Liu
Keyword(s):  
Supply Chain ◽  
Analytical Model ◽  
Hybrid Model ◽  
Trade Credit ◽  
Supply Chain Coordination ◽  
Market Demand ◽  
Quantity Discount ◽  
Model Combining ◽  
Effort Effect

The purpose of this paper is to investigate the role of trade credit and quantity discount in supply chain coordination when the sales effort effect on market demand is considered. In this paper, we consider a two-echelon supply chain consisting of a single retailer ordering a single product from a single manufacturer. Market demand is stochastic and is influenced by retailer sales effort. We formulate an analytical model based on a single trade credit and find that the single trade credit cannot achieve the perfect coordination of the supply chain. Then, we develop a hybrid quantitative analytical model for supply chain coordination by coherently integrating incentives of trade credit and quantity discount with sales effort effects. The results demonstrate that, providing that the discount rate satisfies certain conditions, the proposed hybrid model combining trade credit and quantity discount will be able to effectively coordinate the supply chain by motivating retailers to exert their sales effort and increase product order quantity. Furthermore, the hybrid quantitative analytical model can provide great flexibility in coordinating the supply chain to achieve an optimal situation through the adjustment of relevant parameters to resolve conflict of interests from different supply chain members. Numerical examples are provided to demonstrate the effectiveness of the hybrid model.

scholarly journals Sustainable Supply Chain Finance and Supply Networks: The Role of Artificial Intelligence

2022 ◽  
pp. 1-16
Author(s):  
Femi Olan ◽  
Emmanuel Ogiemwonyi Arakpogun ◽  
Uchitha Jayawickrama ◽  
Jana Suklan ◽  
Shaofeng Liu
Keyword(s):  
Artificial Intelligence ◽  
Supply Chain ◽  
Sustainable Supply Chain ◽  
Supply Networks ◽  
Supply Chain Finance
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