2021
DOI: 10.1051/ro/2020020
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A financing model with rebate contract in a capital-constrained supply chain

Abstract: In a two-level supply chain that includes one supplier and one capital-constrained retailer, this paper investigates a new bank financing model (Model N), in which, the supplier requires the retailer to order a quantity that is not less than a specified minimum ordering quantity (MOQ), rebates the per unit excess that sells over the MOQ, and promises to provide a partial warranty for the bank credit risk if the revenue is below the bankruptcy level of the retailer with the MOQ. This study shows that retailer's… Show more

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Cited by 5 publications
(3 citation statements)
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“…Business risk refers to the occurrence of business risk due to the lack of comprehensive understanding of market information in the actual management process and the lack of countermeasures for problems in internal management, which creates problems in the operation process and thus affects the normal operation of the enterprise [13][14]. Financial risk, on the other hand, refers to the fact that enterprises do not have scientific planning for financial management work, the use of funds is more arbitrary, and operational risks are increasing, which leads to financial risk [15].…”
Section: Capital Operation Riskmentioning
confidence: 99%
“…Business risk refers to the occurrence of business risk due to the lack of comprehensive understanding of market information in the actual management process and the lack of countermeasures for problems in internal management, which creates problems in the operation process and thus affects the normal operation of the enterprise [13][14]. Financial risk, on the other hand, refers to the fact that enterprises do not have scientific planning for financial management work, the use of funds is more arbitrary, and operational risks are increasing, which leads to financial risk [15].…”
Section: Capital Operation Riskmentioning
confidence: 99%
“…Lu [26] investigates a case that a multinational firm invests in a capital-constrained retailer and gets optimal financing strategy between bank credit financing and trade credit financing. Zhan [45] considers a new bank financing model in which the supplier promises to provide a partial warranty for the bank credit risk if the retailer goes bankrupt.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Additionally, the customer is offered an opportunity to increase the order quantity (Chen et al 2019 ) (Giri and Bardhan 2014 ) (Namdar et al 2018 ) Rebate In this type of coordination contract, the wholesaler is charged with a special rate per unit. By the end of the selling period, the retailer is awarded a rebate for extra units that exceed the threshold value (Zhan et al 2019 ) ( Chiu et al 2020 ) (Zhan 2021 ) Quantity Discount The supplier offers a dynamic price depending on the order quantity. The wholesaler's price decreases as the amount purchased increases (Yoshida et al 2020 ) (Nie and Du 2017 ) (Zhao et al 2020 ) Advanced Purchase Discounts Under this type of contract, the supplier decides period by period to offer a discounted price to a retailer who advances its orders (Pellegrino et al 2020 ) Bonus Bonus contracts have a fixed base amount.…”
Section: Introductionmentioning
confidence: 99%