Optimal Operation Decisions And Financing Strategies For Multi-channel Distribution

With the development of economy and information technology, the competition between companies has changed from the competition of single company to the competition of supply chain. The capital-constrained company can finance their capital from the capital market. With the issue of policy of financially support the development of Small company by the State Council and the increasing number of finance corporations, the credit environment has been largely improved. Hence, it is necessity and importance to study the finance strategies for a capital-constrained company.Meanwhile, a well-operated company often has a strong competition level. And Multi-channel distribution systems have become effective ways for companies to improve their competitiveness and gain the maximum profits. Companies often use different sales strategies according to different capital structure and demand of the customers, and most of the companies will sell products in different ways. Therefore, it is also of great necessity to study the operation decision of companies of multi-channel distribution.This thesis studied the optimal operation decision and financing strategies for capital-constrained companies which have multi-channel distribution. This paper assumed that the company has two distribution channel. In one distribution channel, the supplier allows a partially permissible delay in payments, while in the other, retailers must pay the bill during the transaction. We build a two-stage decision model to model this situation and we first prove the existence and uniqueness of the optimal price. Furthermore, we perform sensitive analysis of the optimal price and a numerical example is given to illustrate the theoretical results. Second, we prove the existence of the order quantity by numerical example. Finally, we discuss the impact of the financing strategy on the optimal operation decision.