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

DOI

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.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the 2014 International Conference on Management Science and Management Innovation
PB  - Atlantis Press
SP  - 491
EP  - 505
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-14.2014.87
DO  - 10.2991/msmi-14.2014.87
ID  - Wang2014/06
ER  -