Research On Supply Chain Operations Based On Trade Credit

The optimal operation strategy which guarantee supply chain efficient and members’ benefit in the supply chain is obtained is one major problem in the supply chain management (SCM). In the SCM. logistic, information flow and cash flow would be three operation factors which are worthy to manage and control. As a typical supply chain financing method, trade credit not only contributes to optimal the cash flow and improves supply chain performance, but also extend the logistic range and scope between upstream and downstream enterprises through attracting enterprises to order more goods. In this paper, the influence of trade credit on supply chain cash flow is considered, and the effect of cash utilization rate and order quantity raising on benefit of upstream and downstream enterprises and total benefit of the whole supply chain is also presented in certain section in my research. In all. supply chain operations with trade credit are considered, which is helpful to solve incentive, coordination, cooperation and uncertainty problems etc. As following, the research conclusion may be contribution in three aspects:Firstly, the supply chain incentive contracts design based on trade credit are presented. By the incentive contracts designing comparing between information symmetry condition and information asymmetry condition, the incentive function of credit trade to retailers in the supply chain is discussed, and contract parameters which make consigners’unity maximal are calculated. Some numerical examples are completed to verify the conclusions.And then, supply chain coordination strategies with trade credit are discussed. Based on revenue sharing contract and quantity discount contract methods, a class of supply chain coordination strategies based on trade credit is considered, and then supply chain revenue sharing contract coordination models based on trade credit and supply chain quantity discount contract coordination models based on trade credit are established. The function of revenue sharing mechanism and quantity discount mechanism on income allocating reasonably and the whole supply chain performance improving are discussed. Based on two parts pricing contract method, supply chain coordination strategy with trade credit-and-advertisement coordination is presented. This strategy is proved to be benefit to supply chain coordination and profit allocation by longitudinal integrated analysis, Nash balance analysis and Stackelberg balance analysis in the trade credit-and-advertisement environment. Furthermore, in the stochastic demand condition, supply chain trade credit coordination contract models are established. The results show even in the stochastic condition, the contracts can also enhance the effective coordination among supply chain members and improve supply chain operation performance. Some numerical examples are provided to prove that above researches are contributed to supply chain coordination under trade credit condition.Finally, supply chain multi-objective robust models with trade credit are presented. By robust linear optimization method based on interval analysis, robust models with uncertain capital cost and term of credit in the trade credit condition are established. And then two numerical examples are designed to verify the robustness of models and solutions. Above researches provide a new method to resolve supply chain uncertainty.