Ordering Decisions In A Interrupted Risk Supply Chain With A Capital-constrained Retailer

The further development of economic globalization makes the lean supply chain model more popular,but the complexity of the social environment makes the supply chain system unstable,the frequent occurrence of sudden events will cause the supply of upstream enterprises to be interrupted,to the downstream enterprise development and supply chain stability to bring a great impact.Since the new century,various types of earthquakes,trade wars,transportation failures and other social events have made supply chain disruptions appear in the public eye many times,therefore,enterprises need to develop a reasonable and effective ordering strategy to manage the risk of disruption.As an important force of social development in China,small and medium-sized enterprises often face serious problems of capital constraints in their operations.In the 2017,the China SME Association said that more than half of SMEs needed financial support in the development process,and that the use of external financing was a very effective way to alleviate the capital woes of enterprises.Based on this,this paper considers the two-level supply chain model composed of two suppliers and one retailer with financial constraints,and introduces the risk of interruption and bank lending,and the retailer takes profit maximization as the basis of decision based on the Newsboy model,aiming at analyzing the different ordering decision ways of retailers under external financing.In the third chapter,this paper first establishes the model of the retailer's non-financing and financing under the supplier single source ordering,then gives the order model of the retailer's capital constraint and the use of external financing in two cases under the dual-source order,and obtains the relevant analytic solution.The fourth chapter is based on the dual-source ordering of retailers,considering the way retailers make options for stable suppliers,and gives the retailers the best decision in the case of capital constraints and external financing.Finally,the numerical simulation is solved by Matlab.It is found that the own funds,loan interest rate and interrupt probability will affect the retailer's optimal decision,and the order quantity from the stable supplier will always increase with the increase of the probability of interruption.Dual-source ordering strategy only becomes the first choice for retailers if the risk of interruption is within a certain range;The option ordering model can increase the retailer's total order volume and profit level,and can make the retailer's order more stable.There are differences in the impact of loan interest rate on retailer's ordering decision under different interruption risk conditions.Therefore,in the practice of enterprises,retailers need to fully consider their own level of capital and the choice of the number of suppliers,and do a good job in risk forecasting management,and establish a good partnership with stable suppliers.