Research On Capital-Constrained Supply Chain With Imperfect Capital Market

Risk is everywhere.Enterprises face risks origining from outside and inside.Risks lead to the uncertainty of the enterprises' incomes,which bring debt default risks to the capital-constrained enterprises.Financial constraints,financing difficulties and costly financing are always significant obstacles for the business development.The application of supply chain finance(SCF)greatly relieves this phenomenon.The essence of supply chain finance is that the core enterprise in the supply chain helps the capital-constrained enterprise to obtain financing by providing guarantees to increase credit(for example,guarantee financing)or directly to provide financing services(trade credit,buyer financing etc.).Under supply chain finance,the core enterprise directly or indirectly shares the risk form the capital-constrained enterprise.The existing researches in Operation Management area have found that the operational decisions and financing decisions of the supply chain are interactively and inseparable.Risks result in uncertainties of the capital-constrained enterprises' incomes,and these uncertainties will propagate along the supply chain.Therefore,the decisions of the capital-constrained enterprises and the core enterprises are affected by initial working capital,risk taking/sharing mode and conditions of capital market.In order to describe the impact of different risk types on the operations and financing decisions of the supply chain system,this thesis considers two common risks in business,i.e.,demand risk and supply risk.In order to describe the impact of the capital market imperfection,this thesis considers the information asymmetry and bankruptcy cost.Based on the concept of supply chain finance,this thesis analyzes the operational and financing decisions of the supply chain with uncertainties.The main contents and contributions are as follows:(1)Consider the problem of pure option supply chain system under debt financing with demand uncertainty,analyze the impact of strategic default risk and debt risk on supply chain system and explore the value of pure option contract in the capital-constrained supply chian.In the supply chain system consisting of a manufacturer and a capital-constrained retailer,this thesis analyzes the option pricing and ordering problems and supply chain performance in four scenarios,i.e.,no capital constraint,financial constraints without credit financing,bank credit and trade credit.It shows that under bank credit,the retailer's default risk has no impact on the system,but has a significant impact under trade credit.There exists a default probability at which the supply chain system achieve the highest profit.(2)Consider the problem of supply chain system under trade credit with demand uncertainty,and analyze the influence of consumers balking and information asymmetry on trade credit.In a supply chain system consisting of a manufacturer and a capital-constrained retailer,the optimal trade contract structure with low initial capital,high initial capital,asymmetric information and information sharing is studied,respectively.With information asymmetry,retailer benefits from the manufacturer's pessimism,while from the manufacturer's optimism with information sharing.An information-dependent trade credit contract with limited credit is designed to force the retailer to share true market information to the manufacturer.(3)Consider the retailer's sourcing and pricing problem with supply uncertainty and analyze the impact of initial working capital and bankruptcy cost on retailer's sourcing,order quantity and retail price strategy under different decision objectives.It finds that under the objective of firm's profit maximization(FPM),limited liability induces the debt-financed retailer to charges a lower retail price,while under objective of firm's value maximization(FVM),bankruptcy cost induces a higher retail price.Debt financing with dual sourcing reduces its flexible regions under both objectives,and bankruptcy cost negatively impacts the flexible regions.Under the fairly-priced trade credit rule,analyze the retailer's sourcing strategies when both suppliers offer trade credit,with the suppliers' heterogeneous in loan recovery capabilities,and loan collection sequence.