The Research on Trade Credit Short-term Financing in a Capital-constrained Supply Chain
Yang Wang, Yue-Hong Shao, Jia-Quan Ou
Available Online June 2014.
- https://doi.org/10.2991/msmi-14.2014.87How to use a DOI?
- Supply chain finance, Capital constraint, Trade credit contract.
- 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.
- 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 SP - 491 EP - 505 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 -