The Study Of Loan-to Value Ratio For Purchasing Business In Z Logistic Company

In order to meet the requirements of the development of modern logistics background, procurement execution of business came into being.The business model can not only solve the problem of regulatory service, weakening the contradiction between logistics companies and bank, but also could solve the financing problem of small enterprise better. Procurement execution service is based on traditional supply chain financial services, and improvements in the operation and idea. Specifically, the procuring right be given the logistics company, in addition to logistics company need to take responsibility for banks, logistics company bear the biggest risk of the project, and the loan to value ratio is a key parameter to control the risk of projects, logistics companies need to strive to keep the risk of the project. Therefor the study of loan to value ratio will have a practical significance.In this paper, using game theory, mathematical modeling Matlab7.0data simulation, based on the position of the logistics company, analyzes the feasibility of the implementation of procurement execution service, research the relationship loan to value ratio the with different situations which supplier provide the buyback contract or not, and the conclusion as follows:For procurement execution, the long-term cooperation between the logistic company and bank which will contribute to reduce the financing costs, loan to value ratio is one of key parameters for business risk control, the value ratio loans and repo rate has a positive relationship. If the market demand function be given, the number of procurement and loan to value ratio has a negative correlation, an optimal loan to value ratio can ensure logistic company have maximal revenue.