Research On Supply Chain Price-only Contract Under Bankruptcy Risk

Since the late 1990 s,with the dramatic changes in the global market environment,the competitive form of the enterprise has changed from competition among single enterprises to competition between supply chain and supply chain composed of multiple enterprises.In order to ensure the success of the transaction and improve the efficiency of the supply chain,upstream and downstream enterprises often need to sign a variety of supply chain contracts.If some enterprises in the supply chain have financial constraints,enterprises often use deferred payment to ensure the coordination of the supply chain as a whole.In recent years,research on the supply chain operations and financing issues with existence of capital constraint become a hot topic of academic research.In addition,the research on the supply chain contract when bankruptcy risk exists is beginning to be paid attention to by academia,but the related research is not perfect.Therefore,it is possible to improve the supply chain contract theory by studying the price-only contract of supply chain with bankruptcy risk.This paper introduces the two variables of bankruptcy probability and bankruptcy cost.In the supply chain of single supplier and single retailer,it is assumed that the retailer has the risk of bankruptcy and the transaction credit financing mode exists between the supplier and the retailer.Through the establishment of model and numerical analysis method,the supply chain price-only contract with bankruptcy risk under stochastic demand and deterministic demand is studied.First,in the case of linear demand,compared to the traditional model,after the introduction of bankruptcy risk,this paper has given the supplier pricing strategy;and found that with the bankruptcy costs become larger,the wholesale price is the same at the beginning,then decrease,after the bankruptcy cost reaches a threshold determined by the probability of bankruptcy,the wholesale price will suddenly become larger and then remain unchanged;the study analyzes the impact of bankruptcy probability and bankruptcy cost on the change of the supply chain order.In addition,it is found that if the bankruptcy costs and probability is too large,then the supply chain may not run.In the case of stochastic demand,the necessary condition for the retailer to repay the debt is found first.Then,the optimal pricing strategy of the supplier is given.It is found that the pricing strategy of the supplier is also affected by the bankruptcy cost and the bankruptcy probability.And the relationship between the order quantity and the traditional order is only affected by the cost of bankruptcy,when the bankruptcy cost is greater than the threshold,the order quantity becomes larger,otherwise smaller;then this paper finds a reasonable order range which has significant impact on supplier pricing,and gives the relationship between the upper and lower bounds and the probability of bankruptcy.Finally,the research topic of this paper is summarized and forecasted.