Research On Ordering And Financing Decision Of Supply Chain Based On Credit Payment

Supply chain finance is advancing rapidly as a creative financing business that breaks through the traditional bank credit modes.Credit payments backed by core enterprises play a vital role in solving the financing problems of the supply chain,and the operating patterns of credit payments is constantly innovating in business practice.As Internet technology continues to advance,large online retailers are beginning to move their financial operations online and offer financing services to suppliers.Meanwhile,they also start launching consumer finance products that offer installment payment services to consumers.Furthermore,credit payments are also often combined with volume discounts,sales rebates,etc.,as a preference for core businesses to treat partners with high credit ratings.Consider the credit payments in supply chain operational decisions,this paper is divided into the following aspects:(1)We study the ordering and pricing decisions of the retailer under different payment and financing schemes,in a three-stage supply chain system consisting of one supplier,one retailer and multiple customers.The supplier is financial constrained and the retailer is the leader of the supply chain.To enable the supplier to obtain funds for production,we consider two financing options: bank loan and retailer-direct financing(RDF).Based on these two financing options,we further consider the impact of retailers offering installment services to customers on supply chain operational decisions.The results show that: compared to bank loan,RDF can reduce the supplier's financing costs,increase profits for the retailer and the supplier,and improve the efficiency of the supply chain.Providing instalment services to customers can lead to significant profit growth for supplier and retailer,which stimulates the retailer to help the supplier with financing to solve the supplier's cash flow problems.(2)We study the retailer's decisions where credit payments and sales rebates are affected by credit ratings,in a two-stage supply chain consisting of one supplier and one retailer.We discuss a credit rating mechanism where the supplier,as the core enterprise,rates the retailer by his order quantity.The retailer is financial constrained,and the supplier divide the retailer into regular or vip customer by his order quantity at the beginning of the period,and then offer preferential treatment accordingly.The results show that under this mechanism,the optimal decisions of the retailer are closely related to its own funding level and the supplier's order volume threshold.In the optimal strategy,the optimal order quantity and the optimal sales effort are always turn out to be in pairs.