Proceedings of the 2014 International Conference on Management Science and Management Innovation

The Research on Trade Credit Short-term Financing in a Capital-constrained Supply Chain

Authors
Yang Wang, Yue-Hong Shao, Jia-Quan Ou
Corresponding Author
Yang Wang
Available Online June 2014.
DOI
https://doi.org/10.2991/msmi-14.2014.87How to use a DOI?
Keywords
Supply chain finance, Capital constraint, Trade credit contract.
Abstract
In this paper we consider a supply chain consists of a single supplier and a single retailer which has the optimal order quantity. The supplier can offer the retailer short-term financing with a trade credit contract. The retailer has three payment choices: Full Payment; Full Credit; Partly Payment. We study a retailer which is capital constrained how to choose his payment scheme in order to optimize his efficiency. We conclude that the supplier is always willing to finance the retailer at rates no more than the risk-free rate. Furthermore, both profits of supplier and retailer improve with optimal trade credit contracts, and the supply chain efficiency always keeps the same.
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Proceedings
2014 International Conference on Management Science and Management Innovation (MSMI 2014)
Part of series
Advances in Economics, Business and Management Research
Publication Date
June 2014
ISBN
978-94-6252-015-8
ISSN
2352-5428
DOI
https://doi.org/10.2991/msmi-14.2014.87How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Yang Wang
AU  - Yue-Hong Shao
AU  - Jia-Quan Ou
PY  - 2014/06
DA  - 2014/06
TI  - The Research on Trade Credit Short-term Financing in a Capital-constrained Supply Chain
BT  - 2014 International Conference on Management Science and Management Innovation (MSMI 2014)
PB  - Atlantis Press
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-14.2014.87
DO  - https://doi.org/10.2991/msmi-14.2014.87
ID  - Wang2014/06
ER  -