Research On Financing Strategy Of Green Supply Chain Finance

In response to global climate change,different countries and regions around the world have launched low-carbon policies to control carbon emissions,and consumers’ awareness of environmental protection has been increasing.Under the dual pressure of the government and the market,more and more enterprises have begun to invest in green production.In the supply chain composed of manufacturers and retailers,the insufficient level of green input from manufacturers may lead to production failure to meet environmental protection standards and lead to production interruptions.Affect the retailer’s source of supply,which in turn affects the retailer’s expected revenue.In order to ensure stable supply,manufacturers should increase investment in green production,which helps to pass relevant inspections by environmental protection departments,but will result in higher production costs.Therefore,it is of great significance for manufacturers and retailers to study the optimal green input level of manufacturers.At the same time,retailers in the downstream of the supply chain are often small and medium-sized enterprises and often face financial constraints.Within the supply chain,retailers can choose to use different commercial credit financing within the supply chain,such as immediate payment and deferred payment,to alleviate the difficulty of capital payment,or they can also use supply chain financing methods such as loans to external institutions such as banks to alleviate the capital problem of enterprises.In the existing literature,there are many studies on supply chain green investment or supply chain finance,but no report has been found that comprehensively considers the manufacturer’s green investment level decision and the retailer’s payment decision under different commercial credit terms.Therefore,this paper comprehensively considers the manufacturer’s green production decision and the retailer’s capital constraints,and analyzes the retailer’s order quantity and the manufacturer’s green production level investment decision under different financing strategies.Operational practices provide management implications.The main research contents of the article are as follows:First,under the requirements of low-carbon emission reduction,retailers with financial constraints use the internal commercial credit financing method of the supply chain to build a manufacturer-led supply chain for the supply chain composed of a single well-funded manufacturer and a single financially constrained retailer.The Stackelberg game model,also known as the TCF model.In order to solve the retailer’s financing problem,two types of commercial credit financing terms,namely immediate payment and deferred payment,are introduced,and under each financing mechanism,the manufacturer’s optimal green production level and the retailer’s ordering decision are analyzed.By comparing the two commercial credit financing mechanisms,when the number of orders is small,retailers who choose the immediate payment financing mechanism will obtain greater profits;otherwise,they will choose the deferred payment financing mechanism.For manufacturers,under the immediate payment financing mechanism,the green production level that needs to be invested is higher and the impact on the environment is small;under the deferred payment financing mechanism,better profits can be obtained,but it is not conducive to environmental protection.Secondly,using bank credit financing,a manufacturer-led Stackelberg game model,also known as the BCF model,is constructed.And under the financing mechanism of bank loan,the optimal green production level of the manufacturer and the ordering decision of the retailer are analyzed.Research shows that similar to the TCF model,early payment is also the only financing equilibrium in the BCF model.In the parametric sensitivity analysis,both the BCF model and the TCF model confirmed the supply and demand theory.Through numerical example analysis,the supply chain system is researched under three financing models,and a comparative analysis is carried out to select the financing strategy with the greatest value to retailers and manufacturers.Bank financing was found to be more suitable for retailers when order volumes were lower,and was also better for the environment.Finally,according to the above conclusions,relevant suggestions are put forward for enterprises and governments,so that economic development and environmental optimization work together present a good situation.