Supply Chain Coordination Research Of The Call Option Contract Under Order Financing

As the customer requirement becomes the main factor in the supply chain decision,the coordination problem of retailer dominated supply chain is gradually being paid attention by the researchers.With the continuous development of the problem about small and medium enterprise financing difficulties and financing expensive,the study on capital constrained supply chain is attached to the academic community.So it is very important to solve the problem about how to coordinate the supply chain where the retailer is a leader and the supplier's initial capital is limited.The coordination of the capital constrained supply chain is the research object of this paper.And this paper wants to study the following three aspects: 1.coordination model and coordination range of the model;2.the profit distribution scheme of the model;3.the influence of the initial capital to the model.With the call option contract model under trade order financing,this paper studies how to coordinate the supply chain where the retailer is a leader and the supplier's initial capital is limited.In determining the optimal decision of the supplier,it is found that the decision function is a piecewise function.According to different ranges,this paper established two models named "order coordination mode one" and "order coordination mode two".The study get the following conclusions: In "order coordination mode one",it can coordinate all types of supply chain.And with the increase of the option execution price,the profit of the retailer will decrease,and the profit of the supplier will increase.What's more,with the increase of the initial capital,the number of the coordinated program will increase,the suppliers' maximum profit will increase and the minimum profit of the retailer will decrease.In "order coordination mode two",it can only coordinate supply chain with capital constraints.And with the increase of the option execution price,the profit of the retailer will decrease,and the profit of the supplier will increase.What's more,when the initial capital is greater than one critical value,with the increase of the initial capital,the number of the coordinated program will decrease,the suppliers' minimum profit will increase and the maximum profit of the retailer will decrease.In the end,the paper proves the correctness of the theory by using MATLAB.And the findings of this paper have reference value for practical decision.