Research On The Performance And Efficiency Of Supply Chain Under The Strategy Of Purchasing Order Financing Plus Reverse Factoring Financing

With the development of China,there are appearing more and more SMEs(small and medium enterprises),and they are playing an irreplaceable role in China's economy,increasing the economic vitality of China and promoting technological progress,especially in providing employment opportunities in China.Over the past several years,SMEs have made essential contributions to the development of society and economy.However,for the economy of China has entered a new period of New normal,SMEs are facing the difficulty of“financing hard and financing expensive",due to the gradual accumulation of accounts receivable or inventory accumulation.Lacking of sufficient capital often has influence in the production planning,as a result,relevant stakeholders in the whole supply chain suffer losses.Hence,getting help from the financial institution is essential for the SMEs.With the development of the supply chain fiance,the financial industry has not alleviated the problem of difficult and expensive financing for SMEs.Owe into lack of sufficient collateral assets,poor credit rate and nonstandard internal management,the SME suppliers could not to obtain bank loans.Based on the innovation of the supply chain,in order to prevent the loss of their interests,the core enterprises-retailers-and the suppliers cooperate each other,and the retailers with sufficient capital would like to offer assist to the SMEs supplier.This paper studies a kind of financing strategy called 'Purchasing Order Financing plus Reverse Factoring financing model,which is an innovation of the practice of'Walmart and its suppliers financing solution'.In this mode of financing,when the supplier provides a retail price,the retailer submits an order to the supplier,The supplier depends on the retailer's good credit to apply for purchasing order financing from the financial institution.the financial institution charges a interest for providing funding to the supplier and provides loans to the supplier.After the supplier obtains the funding from the financial institution,it organizes the production plan and supplies the production and replenishment to the retailer.Later,the supplier receives a sum of accounts receivable.After the stock of the supplier is gone,and there is also the extra demand,the supplier selects part of the accounts receivable to take reverse factoring,so that it can be used for urgent production.In this study,we use two methods for research:making models and numerical simulation with MATLAB.Firstly,We make three models in disperse decision-making process and centralized decision-making process,three models include:the benchmark model,the two-stage decision model of order financing plus reverse factoring financing and the overall decision model of order financing plus reverse factoring financing.We calculate these models and the existence of optimal solution under centralized decision and decentralized decision is obtained respectively.Then,by using MATLAB numerical simulation,we change the standard deviation of demand and retail price,and analyze the performance and efficiency of supply chain under different models,some valuable conclusions are drawn to guide the practice.Research findings include:1.When the other conditions are certain and market demands with different standard deviations are normally distributed,if decentralized decision-making is adopted,the optimal production output of suppliers and the optimal order quantity of retailers should be determined by the overall decision model of order financing plus reverse factoring financing.In the case of centralized decision making,the amounts should be determined by the standard deviation,we need to calculate in the model.2.When the other conditions are certain and market demands for different standard deviations are met,the efficiency of the overall decision model of order financing plus reverse factoring financing is better than that of the two-stage decision model.3.When the other conditions are certain,we change the retail price.If the performance of the supply chain is taken into account,the supply chain needs to use the two-stage decision model to make decisions.4.When the other conditions are certain and the retail price is changed,the supply chain efficiency of the overall decision model of order financing plus reverse factoring financing is higher than that of the two-stage decision model.Regardless of the changes of standard deviation or retail price,the production model that takes into account the reverse factoring financing in the second stage can significantly increase the performance and efficiency of the supply chain.And the overall decision model is much better than the two-stage decision-model.