Equilibrium Strategies of Advanced Payment Financing for  FinancialConstraint Supplier

Abstract

Abstract:

For the problem that a financialsufficient retailer alleviates the impact on supply chain operation from the financial shortage through advanced payment scheme to provide production financing for the financialconstraint supplier, this paper investigates the advantage of advanced payment financing scheme compared to external bank financing and the coordinating contracts under advanced payment. The results show that, in contrast of bank financing, the retailer can incent the supplier to select advanced payment financing scheme by adjusting wholesale price to realize Pareto improvement for both players, the efficiency of the whole supply chain can improve simultaneously. If the supplier cannot approach bank financing, advanced about payment financing coordinates the supply chain. If bank financing can be approached, supply chain coordination can be achieved by the retailer through joint adoption of advance payment and revenuesharing contract as well.

Key words: supply chain, suppliers, retailers, financial constraint, advanced payment

CLC Number:

F 253.2

LI Chao1,3，LUO Jianwen2. Equilibrium Strategies of Advanced Payment Financing for FinancialConstraint Supplier[J]. Journal of Shanghai Jiaotong University, 2017, 51(2): 229-.

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Equilibrium Strategies of Advanced Payment Financing for FinancialConstraint Supplier

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