Financing And Operating Policies Research Of Decentralized Assembly System Under Cash Constraint

With the development of economic globalization, the supply chain of decentralizedassembly system is becoming more and more common in the real production system. Dueto large amounts of suppliers and decentralized decision right in the decentralizedassembly system, every supplier make decisions under the principal to maximize theirown profit, then the phenomenon of asymmetry in information transfer and parts supplybetween supplier and assembler appears. Indeed, not only logistic and information flow,but also cash constraint contribute to the phenomenon. In the real market operations,enterprise’s financing decisions will inevitably have a significant impact on the operationaldecisions. Therefore, in order to research assembly system more deeply, taking the cashconstraint into account will be more practical significance. In this context, the researchwill focus on financing and operating policies of decentralized assembly system undercash constraint.The decentralized assembly system consists of one cash-constrained assembler andtwo suppliers. Based on the sequence of events, in the Stackelberg game, the system isdivided into pull and push models. The supplier as the game leader in pull model whilesthe assembler as the game leader in the push model. In pull model suppliers have a pricedecision. Based on initial cash of assembler, the model derived four different financingand ordering policies of assembler. Responding to four policies of assembler, first, weresearch the benefit and risk of financial institutions. Then, in each situation, the studyproves that the supplier can get the optimal wholesale price and solve it. In push model,the research study the policies of suppliers and assembler and get related conclusion firstly,then we introduce the cash constraint, solve the optimal supply quantity of suppliers andoptimal ordering and financing policies of assembler under cash constraint, Through thestudy of the two models, we can provide guidance about financing and operating policiesfor members in decentralized assembly system under cash constraint.