Research On The Operational Decisions And The Financing Decisions Of The Supply Chain With Financial Constraints

Whatever in developed countries or in developing countries,small and medium enterprises(SMEs)are the main force of economic development,which play an important role in stabilizing the economy,technological innovation,creating jobs,export,and providing social services.In China,SMEs have become the main driving force of economic development,market prosperity,technological innovation and employment increase,however,capital shortage is a common problem in many small and medium enterprises.Undoubtedly,financial constraints will affect the operational decisions and the performance of the enterprises,the performance and competitiveness of the whole supply chain,and even the development of the economy in the entire society.What's worse,due to shortage of collateral and guarantees,SMEs face problems with regard to raising finance through regular borrowing,and therefore its survival and development is unsustainable Consequently.It is necessary to research on the operational decisions and the financing decisions of the supply chain with financial constraints.Based on the above mentioned background,using optimization theory,behavioral decision theory,operations research,game theory,economics,system theory,management and other methods,we research on the operational decisions and the financing decisions of the supply chain with financial constraints.It should be noted that our research is within the scope of the internal financing and the external financing of the supply chain,which are trade credit and factoring respectively.The main research contents are as follows:Firstly,this paper analyzes the important role of the SMEs play in economy and society development,describes the financial difficulties faced by the SMEs,introduces a variety of financial products,sums up the research conditions of supply chain finance at home and abroad,gives the future research directions of supply chain finance,and summarizes the function to carry out supply chain financing services.Secondly,this paper studies on the operational decisions and the financing decisions of the supply chain with financial constraints based on trade credit,it includes four aspects:First of all,this paper studies the joint decisions of the lot-sizing and the trade credit in supply chain,the joint decisions heuristic algorithms to find the retailer's optimal order quantity,the manufacturer's optimal lot-sizing and the optimal trade credit period based on periodic trade credit are proposed,which provides a theoretical basis to realize the supply chain coordination using the contract with trade credit.Next,the joint decisions heuristic algorithms of the ordering policy and the trade credit policy with a limit to the retailer's bankruptcy probability are proposed,which lay the scientific basis for the supply chain decision making when bankruptcy probability limit exists.Then,owing to the action taken by the enterprises' decision makers deviating from the optimal solutions under the assumption of full rationalities,this paper researches on the effect of payment timing on the enterprise's operational strategies and performance.The results show that the decision makers who have different goals will choose different payment schemes.This study reveals the effect of payment timing on the operational policies and provides a scientific basis for the enterprises' payment scheme choice.Lastly,this paper researches on credit based on different credit ratings and three credit forms.The results show that the suppliers and the retailers having different credit ratings will have different credit form choice priority.This study provides a scientific theory for the suppliers to formulate credit forms and for the retailers to choose appropriate credit forms provided by the suppliers.Thirdly,this paper researches on the operational decisions and the financing decisions of the supply chain with financial constraints based on factoring.Most related papers either make empirical researches or make qualitative analysis on factoring,there are few literatures study on factoring using quantitative methods.In this paper,the algorithms to find the optimal discount rate of non-recourse factoring and recourse factoring and the factoring choice scenarios are proposed under two different assumptions respectively,one assumption is infinite demand and the supply chain members having bad debt probability,the other assumption is stochastic demand and the retailer having bankruptcy cost.These studies provide a scientific basis for the factoring decision-making and the factoring choice of the supplier and the factor.This research contributes to the development of factoring in China,eliminates the gap between the developed countries and China,and promotes the sustainable,stable and healthy development of our economy.Finally,the research results and the future research directions are summarized.To conclude,capital shortage is a risky challenge to the SMEs,so providing theoretical guidance for the SMEs to solve the difficult financing problem effectively will have a positive impact on the whole supply chain,the entire industry,and even the overall economy.This paper will develop and supplement the theoretical basis of the supply chain,provide theoretical and practical guidance for the capital-constrained enterprises in the supply chain,solve the prevalent capital shortage problem,improve the integral value of the enterprises,and enhance the overall competitiveness of the supply chain,so as to promote the steady and healthy development of the socio-economic.Undoubtedly,the research of this paper will have important theoretical and practical significance.