Capital-Constrained Supply Chain Decisions:Financing,Procurement And Tax

Both upstream and downstream firms in a supply chain are usual capital constraints,and their's operational and financial decisions have always affected by tax policy and procurement strategy.In the case of imperfect capital market(considering tax,bankruptcy and agency costs),this dissertation builds joint operational and financial decision models for a variety of supply chains by using game theory,supply chain management theory,accounting,and financial theories.The research on tax,bank:ruptcy and agency costs enriches theories in capital-constrained supply chains and can provide suggestions for firms and government decision-making.The main contents and results of the thesis are as follows.First,based on capital-constrained in downstream firm and uncertain demand,this dissertation studies how the bankraptcy cost and corporate tax affect firms9 decision marking.For both exogenous and endogenous wholesale prices,I show that the retailer's optimal order quantity decreases in the tax rate and increases in the bank's recovery rate.However,the effect of internal capital on the retailer's order quantity and profit depends on the tax and recovery rates.For the endogenous wholesale price case,the results show that the retailer's order quantity and the manufacturer's profit are both greater than those in the traditional newsvendor setting(with taxes),provided the tax rate is relatively high.Second,based on capital-constrained in downstream firm and uncertain demand,this dissertation investigates how the replacing business tax(BT)with value-added tax(VTA)affects equilibrium financing in a capital-constrained supply chain.The dissertation shows that under the VAT system,the manufacturer's optimal order quantity will increase in the case of bank credit and the productive servicer can get more profit in the case of trade credit.When both bank and trade credits are viable,the unique equilibrium financing is bank credit(trade credit)if the risk-free interest rate is relatively low and the service cost is relatively high(low)but is always trade credit if the risk-free interest rate is relatively high.By numerical studies,I show that the supply chain efficiency under the VAT system is higher than that under the BT system.Finally,based on capital-constrained in upstream firm and uncertain supply,this dissertation discusses the choice of procurement strategy under a capital-constrained supply chain.Under control strategy,I show that if the CM's capital cost is larger(smaller)than the risk-free interest rate,the equilibrium product's quality is higher(lower)in bank finance than in buyer finance and all firms prefer bank(buyer)finance.But this is not always the case for delegation strategy(the existence of agency cost).For a given financing strategy,this dissertation finds that if the OEM's capital cost is smaller than or equal to the CM's capital cost,both the OEM and the SP prefer control strategy.Otherwise,both the OEM and the SP may prefer either control strategy or delegation strategy.But the CM always prefers delegation strategy.