The Ordering Model Research Based On Financial Supply Chain Under Conditions Of Delayed Payment

After the financial crisis era, it’s the key to increase the market demand for enterprise’s success. In order to stimulate purchase, sellers change the traditional way which as soon as goods arrives warehouse they pay immediately to the new way which they turn to credit strategies to increase external demands. It arouses the widespread concerns about study of inventory policy under the credit payment. Over the years, sellers provide credit payment term and allow delayed payment for buyers. Those behaviors have gained the enormous benefits and fruitful achievements in the field of theory researching or practice developing. Allowed delay to pay under the conditions of the order or pricing decision research, there is an assumption that enterprise’s funds are sufficient. The assumption ignores the credit risks for sellers owing to the credit strategies. If buyers are unable to pay the full order payment in the delayed payment of credit expires, it will bring the great risks to the whole supply chain. While the rising of supply chain finance solves the problems of the SMEs financing constraints in the supply chain. However the current studies rarely combine the financial operations of the supply chain with inventory under the credit payment. In addition, researching on the inventory of credit payment models mostly consider single-stage credit payment of manufacturers and distributors. Actually, it is also a common business behavior that dealers provide customers with credit payment. At the same time various types of products are perishable in difficult custody, corruption-prone features, enabling manufacturers and distributors in increasingly competitive under market economy system, take credit policy to promotion.Therefore, with perishable goods in the background this article from dealers’ point and on the basis of the financial business of the supply chain will study the order policy under the condition of single-stage credit payment and two-stages credit payment which manufacturers provide dealers with credit payment term and dealers provide customers with a credit payment term.The main contents of this paper are summarized below:1. We reviewed the domestic and international literature about inventory policy of Credit payment and supply chain finance, summed the problems that exist in the current study and pointed out the possible research direction.2. We expounded the concept of supply chain finance and relevant theories in the credit payment and built the basic model which is based on the order model of supply chain finance.3. we integrate the financing problems in the supply chain finance with the order model of single-stage and two-stages credit payment. At the same time, we take into account not only the cash management elements of dealers’sales of ability to repay, financing interest, investment income and credit payment term, but also the form of repayment which dealers pay back the financing institutions. We build the order model which is based in the single-stage and two-stages credit payment in the supply chain finance. We make the solution of the model, then get the universal formula of the maximum expected profit and optimal order quantities. We combined with sensitivity analysis and conducted in-depth discussion that dealers’ order strategies based on the supply chain finance business. At last we obtained a series of useful conclusions. The model provides SMEs with a new access to funds and ordering strategies.