Optimal decisions and financing strategies selection of supply chain with capital constraint
type: Item
instance of: scholarly article
title: Optimal decisions and financing strategies selection of supply chain with capital constraint
zbMATH Open document ID: 1400.90041
DOI: 10.1155/2016/6597259
author: Bo Wang
author: De-Chun Huang
author: Haiyan Li
author: Ji-Yong Ding
published in: Mathematical Problems in Engineering
publication date: 2018-10-12T00:00:00Z
review text: Summary: 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.
Mathematics Subject Classification ID: 90B06
Mathematics Subject Classification ID: 91B38
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 91G80
zbMATH DE Number: 6953465
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2016/6597259
OpenAlex ID: W2498497635
Wikidata QID: Q59141094
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description: scientific article; zbMATH DE number 6953465