Research On Supply Chain Financing Strategy Considering Delayed Subsidies Under Different Remanufacturing Modes

Most of these remanufacturing companies are small and medium-sized enterprises that play an important role in promoting China’s economy.Some of them produce remanufactured products by themselves,while others choose to outsource or authorize their remanufacturing business to remanufacturers.These all involve a lot of capital investment.Although China’s WEEE(Waste Electronics and Electrical Equipment)fund policy provides subsidies for the disposal of waste electrical and electronic products,it often takes a long time to determine and verify the remanufacturers’ eligibility for subsidies,resulting in these enterprises face a serious shortage of funds.Therefore,in different remanufacturing modes,it is urgently needed to be studied for how to solve the problem of financing strategy choices for remanufacturing enterprises facing insufficient funds due to delayed subsidies.The main research contents are as follows:Firstly,in the manufacturer remanufacturing mode,we consider a remanufacturing supply chain consisting of a financial constrained manufacturer and a retailer without financial constraints,respectively,and construct financing models for no financing,equity financing,and subsidy-based confirmation financing,to explore the supply chain financing strategy issues.Secondly,in the authorization remanufacturing mode,we consider a remanufacturing supply chain comprising one manufacturer with sufficient funds and one capital constrained remanufacturer,and construct financing models for no financing,manufacturer financing,and subsidy-based confirmation financing,respectively,so that to discuss the financing strategy of supply chain through the sensitivity analysis of key parameters and profit comparison.Finally,in the outsourcing remanufacturing mode,we consider a remanufacturing supply chain consisting of a well-funded manufacturer,a retailer,and a capital constrained remanufacturer,and establish financing models for no financing,equity financing,manufacturer financing,and subsidy-based confirmation financing to discuss the financing strategy of the supply chain under this mode through model analysis.Considering the capital constraints of remanufacturing enterprises caused by delayed subsidies,analytical results show that:(1)In the manufacturer remanufacturing mode,the manufacturer’s initial capital level and the venture investors’ equity dividend ratio have a greater impact on the supply chain financing strategy.When the equity dividend ratio is low,the manufacturer with relatively short initial funds can obtain higher profits by choosing the equity financing strategy;when the equity dividend ratio is high,the manufacturer with a large capital gap chooses the equity financing strategy and have higher returns.And when the equity dividend ratio is high or low,the manufacturer with a smaller funding gap can obtain higher returns by choosing subsidy-based confirmation financing.(2)In the authorized remanufacturing mode,the remanufacturer’s initial capital level has a greater impact on its financing strategy.When the remanufacturer’s initial capital is very short,it is more inclined to apply for a limited confirmation loan from the bank;otherwise,when the initial capital level is not very low,compared with the subsidy-based confirmation financing strategy,the manufacturer financing strategy will lead to higher margins for remanufacturers.In addition,no matter what financing strategy is adopted,the remanufacturer needs to weigh the pros and cons before financing,and the lender also needs to consider setting an appropriate interest rate.(3)In the outsourcing remanufacturing mode,the remanufacturer’s initial capital level and the venture investors’ equity dividend ratio both have a greater impact on its financing strategy.When the initial capital level is very low and the proportion of equity dividends is low,if the unit production cost is increased or the scale effect coefficient is recovered,the remanufacturer’s profit will be higher under the manufacturer financing strategy.The difference is that when the equity dividend ratio is higher but the funding gap is smaller,the remanufacturer’s profit under the subsidy-based confirmation financing strategy is higher.