Research On Buyer Financing Based On Multi-Cycle Pull Supply Chain

There are often small and medium-sized enterprises with limited funds in the supply chain.Due to their short establishment time,small scale,and credit history,it is difficult for these small and medium-sized enterprises to obtain bank loans.If these small and medium-sized enterprises cannot operate normally due to lack of funds,it will not only hinder their own development,but also affect other enterprises in the upstream and downstream of the supply chain.The goal of supply chain financial services is to maximize the overall revenue of the supply chain,and from the perspective of the entire supply chain,it provides a new way to solve the problem of financing difficulties for small and medium-sized enterprises.In practice,a manufacturer with limited funds will start production after obtaining a loan.There may be multiple sales cycles after the end of a sales cycle,and manufacturers will make different decisions based on their own inventory and funds.This paper explores a pull supply chain in which a cash-constrained manufacturer sells products through a cash-rich retailer.Before the sales cycle begins,manufacturers choose whether to bank or buy-side financing,depending on their inventory and funding position.This paper constructs a mathematical model through game theory,differential calculus,Bellman’s optimal principle and other methods,and solves the optimal production volume and optimal wholesale price in bank financing and buyer financing.First,this paper considers a single-cycle pull newsboy model,where the retailer acts as the leader to determine the wholesale price,and then the manufacturer acts as the follower to determine the production quantity.This paper proves that capital constraints will not affect the manufacturer’s decision in single-cycle bank financing;in single-cycle buyer financing,according to the difference of the manufacturer’s own funds,the discussion is divided into regions,and the retailer and manufacturer in each region are obtained.corresponding optimal decision.This paper also compares bank financing,buyer financing,and centralized supply chains without capital constraints,and proves that buyer financing is better than bank financing in the single-cycle model.Then,based on the single-cycle model,this paper extends the twocycle model,performs inverse solutions according to the Bellman optimality principle,discusses the different production financing situations of the second-cycle manufacturers,and derives the total profit function of the two cycles,respectively.The optimal decision matrix for retailers and manufacturers in two-cycle bank financing and buyer financing is presented.Finally,the paper simulates the single-cycle model and the multicycle model with numerical examples,compares the images of retailers’and manufacturers’ profits changing with wholesale price and production volume,and verifies the conclusions in this paper.