Study On The Financing Decisions Of Supply Chain Service Providers In Capital-Constrained Supply Chain

Financing issues were the key factors that constrained the development of enterprises.Capital-constrained enterprises could not achieve their optimal operational decisions,which in turn affected other members of the supply chain and the overall interests.Choosing the right financing method could solve the problem of corporate financial constraints and create new value.In practice,in addition to traditional bank credit and trade credit,third-party logistics companies sometimes provided financing services to their customers,which was called supply chain service providers financing model.The differences between supply chain service providers financing model and two existing financing model were high efficiency of collateral recovery and financing to different industries to achieve the purpose of diversifying risks.Based on this background,this thesis established a game model between suppliers and retailers,analyzed the impact of collateral value and investment portfolio on financing mode,and studied the choices of different financing modes in different situations.Firstly,the thesis compared traditional bank credit and trade credit,and analyzed the impact of deferred payments on trade credit on order quantities and profits of retailers.The results showed that when the supplier implemented the deferred payment model,the retailer would order more goods.But because the retailer was no need of taking any risk,the profits would be reduced accordingly.Secondly,this thesis studied the choices of enterprises in supply chain service providers financing and bank credit financing due to a difference in the recovery efficiency of collateral.The results showed that retailers would choose supply chain service providers financing when the mean,variance,and sales price was relatively low,and bank credit would be chosen when the value of the mortgage was relatively low.Finally,based on portfolio theory,this thesis analyzed the differences between supply chain service providers financing and trade credit.The conclusions showed that the utility and variance of the trade credit model for investing in the same type of products were negatively correlated.The smaller the variance and the more stable the demand,the greater the utility,which indicated that the low risk was only pursued when investing in one type of product.The supply chain service providers for investing in different products would be more inclined to invest the one with larger mean value(higher demand)in order to pursue more incomes when the variance was small(demand was stable).When the variance was large(demand was unstable),its utility would become larger,which meant the greater the risk,the more the benefits.