Financial Decision-Making For Traders In Coal Supply Chains Under Some Dominant Sea Ports

Coal is the main energy in China, and it is also of crucial importance in economic development. At the same time, these sea ports play dominant roles in the important economic activity of China: The north coal is being transported to the South”. Recently, the coal supply chains under dominant sea ports are greatly changing, among which a basic phenomenon is that traders are facing a problem of narrow financing channel, such as, the borrowing difficulties, and funds shortage. These led to the occurrence of coal supply chain operation risk under dominant sea ports. Based on this, it is urgency to study financial decision-making problems for the coal traders.First of all, paper analyzes the studies in the supply chain financing, private lending both nation and abroad in recent years, then introduced some relevant theories about supply chain financing and private lending, which laying the foundation for the following establishment model of financing decision.Secondly, we set up the models about financing decision for traders at different locations in the coal supply chain(supply chain inventory financing and private lending for upstream coal suppliers, accounts receivable financing and private lending methods for downstream coal dealers). For each of the two financial modes, we set up an earnings maximal model, where the coal trader earnings are related to the audit time, the pledge and lending rates. Based on this, we give the conditions of borrowing or non-borrowing in both supply chain financing and private lending, and for the borrowing case, we provide the optimal value of the financial borrowing and also determine the optimal number for each coal order from the upstream ones.Finally, taking the traders in coal supply chains under Qinhuangdao dominant sea port as the application object, we give the financing strategy for upstream suppliers and downstream dealers.This paper provides useful theory and methods for supporting coal traders when the financial decision-making is needed. Therefore, this research maybe has some important applications for extending and generalizing some practically financial concepts for many coal enterprises on some sea ports, and some of them can promote the economic development of the coal sea ports.