Study On The Movable Pledge Replenishment Strategy Based On Var

The way of inventory financing is to solve the problem of financing of small and medium-sized enterprises. Due to the complexity of the risk management and control, this mode is still at the exploratory stage currently.This paper focuses on the price risk in the inventory financing. Firstly, the paper analyzes the replenishment mechanism based on the price risk. Then, according to the theoretical model of behavior of price, the paper employs the VaR (Value at Risk) method to study the replenishment policy in the stochastic cases. Lastly, decisions of replenishment point and quantity of replenishment are given to solve the problem of replenishment of one and two pledges in inventory financing.The replenishment policy proposed in this paper can decrease the credit risk significantly, and reduce the requirements for the SMEs for getting the bank loans. Therefore, it will improve the situation nowadays and help to solve the problem of financing of SMEs.