Research On Automotive Supply Chain Optimization Decision Based On Trade Credit

In recent years,facing the pressure and challenges brought by multinational automobile manufacturing enterprises,China's auto production enterprises have adopted an entire new supply chain management concept to alliance with the other upstream and downstream enterprises in order to strengthen cooperation in business and enhance market competitiveness.In the automotive supply chain,the suppliers of automotive system(OEM)and parts suppliers are located in the upstream of the supply chain,they are the main financing enterprises in supply chain finance.Automaker is the core enterprise of traditional automotive supply chain.Upstream supplier can not meet the demand of automaker under capital constraint,it will not only reduce the operating profit of the supplier,but also bring the risk of shortage to the automaker,which will affect the competitiveness of the whole supply chain.Through the internal financing of automobile supply chain,it can not only relax the financing restriction,but also save the costs of financing and enhance the overall competitiveness of the supply chain.As the way of supply chain internal financing,trade credit is a credit that offered in the form of delay in payment or advance payment while trade in goods or services.Deferred payment is widely used in commercial practice.The research object of this paper is a three-stage supply chain composed of automaker,system supplier(OEM)and automotive parts supplier.Delay in payment is the main way of the trade credit among the members of the automobile supply chain enterprises.Firstly,this thesis researches the profit of the supply chain system and its members of the automobile supply chain in the traditional mode under capital constraint or not when the enterprises of the supply chain adopt the delay in payment method.According to above two situations,a decision model based on trade credit is established.This paper discusses the production of OEM and the ordering strategy of automaker,then numerical analysis is made through MATLAB simulation software.Then,the thesis researches the situation of automaker adopting the Buy-and-Sell mode,purchasing auto parts from automotive parts supplier at lower price,and re-sell auto parts to OEM when OEM is capital constrainted.The enterprises of the supply chain adopt the delay in payment method.A decision model based on trade credit in Buy-and-Sell mode is established.The profit of supply chain system and its members of the automobile supply chain,the setting range of the trade credit length and the ordering strategy of automaker are discussed.Numerical analysis is made through MATLAB finally.Finally,Through comparing the decisions between the traditional model and the Buy-and-Sell model in the automobile supply chain,the paper discusses the profit situation of the supply chain system and its member enterprises and the ordering strategy of automaker in two modes.The sensitivity of delay payment period and resale price are analyzed.The results show that: the profit of the supply chain system and its members of the automobile supply chain in Buy-and-Sell mode can be higher than in traditional mode under different circumstances byreasonably setting the range of trade credit,and he equilibrium trade credit length in different circumstances is solved.