Inventory financing with overconfident supplier based on supply chain contract
type: Item
instance of: scholarly article
title: Inventory financing with overconfident supplier based on supply chain contract
zbMATH Open document ID: 1427.90017
DOI: 10.1155/2018/5054387
author: Weifan Jiang
author: Jian Liu
published in: Mathematical Problems in Engineering
publication date: 2019-02-08T00:00:00Z
review text: Summary: Overconfidence is a universal psychological behavior. Overconfidence on demand awareness will have a significant impact on operation decisions. The supplier estimated the demand with excessive precision which influences the inventory financing decision-making deeply. We built the demand function based on the supplier's overconfidence. Then we established the retailer, supplier, and the Bank's profit function, respectively. Through the analysis of the bilevel Stackelberg game, we obtained the order quantity of the retailer with the capital constraint, the wholesale price of overconfident supplier, and the loan-to-value ratio of Bank, and we analyzed the influence of overconfidence on the decision variables. We have several findings as follows. First, the overconfidence makes the decisions of the retailer, supplier, and Bank deviate from the rational decisions. Second, the space of the market profit will affect the decision variables in the joint decision-making. Third, the financing supply chain (including the Bank and supply chain) should have a positive attitude towards the overconfidence of the supplier. Forth, in the joint decision-making, the supplier need determines the buyback price according to the capital demand; and in the decentralized decision-making, the supplier should try to use high buyback price strategy.
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 90B06
Mathematics Subject Classification ID: 91B24
zbMATH DE Number: 7019070
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2018/5054387
OpenAlex ID: W2893910566
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description: scientific article; zbMATH DE number 7019070