Application of Prepaying Mode under Cash Shortage with Supplier

Yu, Jianjun; Fang, Yanli; Shi, Wenjun

doi:10.1016/j.procir.2019.05.011

Cited by 2 publications

(2 citation statements)

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“…Ref. [ 15 ] proved that the prepaying mode could help supply chain parties achieve a win–win situation, especially for the capital-constrained supplier. Compared with a bank loan, the supplier was willing to obtain advance payment from the retailer [ 36 , 37 ].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Specifically, there may be significant financial pressure if the upstream manufacturer invests in production and greening technology when demand is still uncertain [ 14 ]. It might also cause insufficient or even interrupted supply to a downstream retailer with a capital-constrained manufacturer [ 15 ]. Few researchers have explored operational management with stochastic demand in the supply chain [ 9 , 16 , 17 ], let alone considered reducing carbon emission by investing in greening technology simultaneously.…”

Section: Introductionmentioning

confidence: 99%

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Supply Chain Coordination under Carbon Emission Tax Regulation Considering Greening Technology Investment

Wei

Huang

2022

IJERPH

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In this paper, we firstly derive the optimal strategies, including greening technology investment, production volume and order quantity decisions with stochastic demand, for the emissions-dependent supply chain composed of one manufacturer and one retailer. Then, an advance purchase discount (APD) contract and an option contract are applied to coordinate the supply chain. Moreover, an innovative prepayment-based option (PBO) contract is designed based on an APD contract and an option contract. We discuss the cash flow, the inventory risk allocation and the impacts of carbon emission tax under each contract. It is found that considering improving cash flow, preselling (or option selling) as a means of supporting the manufacturer with sufficient cash flow will help expand production and invest in greening technology. From the perspective of avoiding inventory risk, the APD contract benefits the manufacturer while the option contract benefits the retailer. However, the PBO contract generates intermediate allocations of inventory risk between manufacturer and retailer.

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Section: Literature Reviewmentioning

confidence: 99%