Analysis of the profits of banks and supply chain enterprises under noncollaborative and collaborative financing

DOI10.1155/2019/6263480MaRDI QIDQ2298633zbMATH OpenOpenAlexWikidataFDO

Authors Xinglin Dong, Jian Pan

Publication date 20 February 2020

Published in Mathematical Problems in Engineering (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.1155/2019/6263480

Mathematics Subject Classification ID

Inventory, storage, reservoirs (90B05) Transportation, logistics and supply chain management (90B06)

Review text

Summary: In order to solve the problem of how to choose a financing strategy for supply chain enterprises with financial constraints, including the manufacturer and the retailer, this paper puts forward two financing strategies in the bilateral supply chain with uncertain output and certain demand. The two financing strategies are the noncollaborative financing (finance from a bank separately (FBS)) and the collaborative financing (finance from a bank uniformly (FBU)). It derives the production order formula of the supply chain enterprises under financial constraints. Under the complete information, according to this formula, it analyzes how the bank prices the loan interest rates and finds the optimal decisions under the two financing strategies. The following results are found: (1) The manufacturer's planned output is negatively correlated with the bank's loan interest rate. The increased interest rates do not necessarily lead to the increased bank's loan profits. (2) The bank's loan profit is higher, when the supply chain enterprises choose the FBS strategy. (3) The FBU strategy does not necessarily make the profits of the manufacturer and the retailer better. It is affirmative only if some parameters in the supply chain meet certain conditions. The above-mentioned conclusions supply a policy guiding the supply chain enterprises with financial constraints to make a choice of the financing strategy.

Recommendations

• Coordinating loan strategies for supply chain financing with limited credit
• Optimal strategies of capital-constrained supply chain with credit guarantee financing
• Optimal decisions and financing strategies selection of supply chain with capital constraint
• Comparative analysis of supply chain financing strategies between different financing modes
• Lending decisions of banks based on three-level supply chains

Cites work

• A Single Bottleneck System with Binomial Yields and Rigid Demand
• Financing the newsvendor: supplier vs. bank, and the structure of optimal trade credit contracts
• Joint Operational and Financial Collaboration in a Capital-Constrained Supply Chain Under Manufacturer Collateral
• Lot Sizing with Random Yields: A Review
• Optimal pricing of competing retailers under uncertain demand -- a two layer supply chain model
• The comparison and complex analysis on dual-channel supply chain under different channel power structures and uncertain demand

Cited in

(1)

• Lending decisions of banks based on three-level supply chains

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