Research On Supply Chain Financing Compensated Contract Under Capital Constrained Manufacturer

Currently,great development has taken place in the global economy,enterprises are required to be more competitive which through expanding scale and increasing the technology investment in order to seize the market.But meanwhile,it is leads manufactures to lack capital,downstream retailers demand failing to be met and retailers facing shortage risk.These influence the stability of whole supply chain.At present,there are two solutions to the capital shortage of retailers: one is paying partly or fully in advance to downstream retailers and the other is financing through the financial products and internet finance provided by financial institutions.This paper focuses on the research on the financing and coordination of supply chain when manufacturers are constrained by capital and facing stochastic market demand.The secondary supply chain consists of a single manufacturer and a single retailer,among of which the manufacturers is leader and retailer is follower and manufacturer faces capital constraint,thus failing to realize optimal production.In researching decentralized and centralized supply chain,we have established objective function based on the expected profit of supply chain and used Stackelberg game model to calculate the parameters for profit-maximizing.This research implies that under capital constraints the supply chain can't be coordinated.Then,the analysis is carried from two different financing channels: firstly,raising capital from retailers,namely giving retailers wholesale price or discount and sharing the loss from asymmetric market information in return for their abandonment of market;secondly,financing through P2 P online lending.As a new financing channel,P2 P lending is an online intermediary,building a stage for both and a bridge for convenient and efficient financing.First of all,under compensated contract of retailer,mainly supply chain model,we make optimal decisions by considering the ratio of loss sharing and compensation of wholesale price discount as well as researching their relationship.According to the research,when these two meet a certain criterion,manufacturers will have adequate capital for production,supply chain will be coordinated and profit will gain Pareto optimal utility.Moreover,under the financing models of P2 P lending platform,three parameters--manufacture default rate,loan loss rate and lending rate are introducedinto the P2 P lending platform with zero security or mortgage to establish the P2 P financing decision model of lending platform.Researches show that financing rate on P2 P lending platform is closely connected to the manufacture default rate and initial capital.When financing rate meets a certain criterion,the overall profit of the supply chain would maximize when manufactures finance through P2 P lending platform.Comparative analysis shows that both financing models could coordinate the supply chain but could be easily affected by the ratio of loss sharing in the financing compensation of retailers and value range of the financing rate on P2 P lending platform.Lastly,numerical examples are used to verify the conclusion of this paper and effects of model parameter changes on corporate profits in the supply chain.