Optimal Decisions and Financing Strategies Selection of Supply Chain with Capital Constraint
Joint Authors
Wang, Bo
Huang, De-Chun
Li, Hai-yan
Ding, Ji-Yong
Source
Mathematical Problems in Engineering
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-14, 14 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-08-03
Country of Publication
Egypt
No. of Pages
14
Main Subjects
Abstract EN
Two financing modes can be considered for manufacturer’s production capital constrained: RPFM (retailer’s prepayment financing mode) and PCFM (procurement contract financing mode).
Under the RPFM, the retailer places order in advance for a discount price and makes prepayment; manufacturer is able to finance from a bank as production quantity cannot satisfy the second-order quantity of retailer.
By contrast, manufacturers make financing from commercial banks based on the procurement contract with upstream supplier under the PCFM.
Taking into account the relation between production volumes with the manufacturer’s own capital and retailer’s order quantity, the optimal production and financing decision model for manufacturer under these two financing modes are built.
Moreover, the profits of the manufacturer, the retailer, and the supply chain are compared and discussed.
Results show that both of the two modes can create new value and profit for the supply chain with capital constraint and achieve optimal production under “newsvendor” mode; the supply chain has the better performance under the RPFM than that achieved under the PCFM.
Also, under the RPFM, the manufacturer’s production and the profit of the whole supply chain would be increased when the manufacturer makes the second financing.
Similar conclusion is reached under the PCFM.
Finally, numerical study was given to demonstrate the conclusions.
American Psychological Association (APA)
Wang, Bo& Huang, De-Chun& Li, Hai-yan& Ding, Ji-Yong. 2016. Optimal Decisions and Financing Strategies Selection of Supply Chain with Capital Constraint. Mathematical Problems in Engineering،Vol. 2016, no. 2016, pp.1-14.
https://search.emarefa.net/detail/BIM-1112484
Modern Language Association (MLA)
Wang, Bo…[et al.]. Optimal Decisions and Financing Strategies Selection of Supply Chain with Capital Constraint. Mathematical Problems in Engineering No. 2016 (2016), pp.1-14.
https://search.emarefa.net/detail/BIM-1112484
American Medical Association (AMA)
Wang, Bo& Huang, De-Chun& Li, Hai-yan& Ding, Ji-Yong. Optimal Decisions and Financing Strategies Selection of Supply Chain with Capital Constraint. Mathematical Problems in Engineering. 2016. Vol. 2016, no. 2016, pp.1-14.
https://search.emarefa.net/detail/BIM-1112484
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1112484