Financing And Pricing Decision Of Dual Channel Supply Chain With Vertical Shareholding Of The Manufacturer

Small and medium-sized enterprises of developing rapidly have become an indispensable part of the national economy.However,most of them existed capital constraints because they were short of the perfect corporate governance mechanism.And with the rise of the Internet,various enterprises have opened their own direct marketing channel,which has intensified the capital restrictions.Therefore,this paper uses mathematical modeling and numerical simulation methods,with the manufacturer as the dominant player in the Stackelberg game,to consider the pricing decisions and financing mode choices of supply chain members when the retailer is constrained by funds under two dual channel models.Besides,this paper also considers how the shareholding ratio affects their financing and operation decisions when they have vertical shareholding among members of the supply chain with limited funds.The specific research contents and results are as follows:Firstly,we study the operational decisions of the manufacturer and the retailer in the retailer’s dual channel supply chain,and the financing decisions of the retailer under funding constraints.The study has found that when there is a shareholding relationship between the manufacturer and the retailer,the manufacturer’s shareholding ratio can affect the wholesale price of the manufacturer and the dual channel selling price of the retailer to varying degrees,which indirectly affects the profits of both parties and the financing methods of the retailer;When considering the optimal financing model from the profit perspective,we also find that the external financing model is best for the retailer,but comprehensively considering the feasibility of orders,the retailer can only choose the single internal financing model,which can be accepted by the manufacturer and can also obtain profits no less than those obtained without financial constraints.Secondly,when the manufacturer remains the dominant party in the supply chain and opens his own direct sales channels,we can study the relevant decisions of members in the manufacturer’s dual channel supply chain.At this point,the dual channel competition shifts towards the manufacturer and the retailer,so the manufacturer needs to balance more factors to decide wholesale prices,direct sales channel prices,and considers whether to provide internal financing to the retailer with limited funds.The results indicate that whether considering better wholesale prices or maximizing their own interests,financially the constrained retailer tends to choose internal financing strategies rather than introducing external financing from third-party banks,and the manufacturer is also willing to provide funds to achieve cooperation.Finally,from the profit perspective,we can compare and analysis the optimal financing decisions of the retailer in two types of dual channel supply chains.Research has found that compared to the manufacturer’s dual channel supply chains,the retailer in the retailer’s dual channel supply chains has more choices in financing methods.In addition to the single financing strategy,he can also use the mixed internal and external financing strategy,through numerical simulation,the optimal internal financing ratio can be found,which allows the retailer to achieve higher profits than under the single financing strategy.The low-cost and convenient online shopping not only attract more and more small and medium-sized enterprises to open their own direct sales channels,but also exacerbate the financial difficulties of enterprises that already have financial constraints.The research results of this paper can provide some guidance for financing decisions of small and medium-sized enterprises with limited funds,enabling enterprises to negotiate financing decisions that maximize profits through appropriate pricing when choosing to open their own direct sales channels.