Financing strategy selection and coordination considering risk aversion in a capital-constrained supply chain

Kang, Kai; Lu, Tao; Zhang, Jing

doi:10.3934/jimo.2021042

Cited by 7 publications

(3 citation statements)

References 58 publications

(77 reference statements)

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“…The research results indicate that combined contracts can coordinate the supply chain, but coordination can only be achieved when the manufacturer's risk aversion is low, with the manufacturer's risk aversion being an important factor in contract design and profit distribution. Kang et al (2022) investigated financing strategy selection and coordination issues in a capital-constrained supply chain between risk-neutral retailers and riskaverse suppliers. The study found that the supplier's risk aversion level critically influences the choice of financing strategy and proposes providing different financing strategy recommendations to retailers based on risk a itude and profit-sharing coefficient.…”

Section: Literaturementioning

confidence: 99%

Pricing and Financing Strategies of Dual-Channel Green Supply Chain with Risk Aversion and Consumer Preferences

Zhang,

Li,

Liu

et al. 2024

Preprint

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Nowadays, considering the growing tendency of companies towards e-commerce as well as green production, and dual-channel green supply chain management has become particularly important. This paper investigates pricing decisions within a dual-channel green supply chain framework while considering the capital constraints faced by risk-averse manufacturer. Simultaneously, the impact of the degree of risk aversion, consumer green preferences, and channel preferences on the optimal decision-making process of green supply chain members is analyzed. We address the issue of financial constraints faced by manufacturer through bank loans and trade credit financing and compare the two cases. Our findings illustrate that trade credit financing outperforms bank loan financing in the dual-channel green supply chain. Moreover, pricing decisions under different models are influenced by consumer preferences and risk aversion. Specifically, the greenness of the product, wholesale price, and sale price exhibit negative correlations with manufacturers' risk aversion but positive correlations with consumer preferences.

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Section: Literaturementioning

confidence: 99%

Pricing and Financing Strategies of Dual-Channel Green Supply Chain with Risk Aversion and Consumer Preferences

Zhang,

Li,

Liu

et al. 2024

Preprint

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“…With the rapid development of e-commerce and network technology, supply chain competition is also gradually obvious [1]. Supply chain finance as the current enterprise survival and development have to pay attention to the link, a large number of enterprises based on their own conditions and circumstances to put forward targeted financing needs [2]. With the increase of supply chain nodes and links, the model is constantly enriched, the structure is constantly complex, the nodes of the information exchange, financial transactions, product logistics and other methods of the frequency of exchanges is increasing, the difficulty of data processing is rising [3].…”

Section: Introductionmentioning

confidence: 99%

Research on Credit Risk Prediction Method of Blockchain Applied to Supply Chain Finance

Liu,

Lin

2024

ICST Transactions on Scalable Information Systems

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INTRODUCTION: From the perspective of blockchain, it establishes a credit risk evaluation index system for supply chain finance applicable to blockchain, constructs an accurate credit risk prediction model, and provides a reliable guarantee for the research of credit risk in supply chain finance.OBJECTIVES: To address the inefficiency of the current credit risk prediction and evaluation model for supply chain finance.METHODS: This paper proposes a combined blockchain supply chain financial credit risk prediction and evaluation method based on kernel principal component analysis and intelligent optimisation algorithm to improve Deep Echo State Network. Firstly, the evaluation system is constructed by describing the supply chain financial credit risk prediction and evaluation problem based on blockchain technology, analysing the evaluation indexes, and constructing the evaluation system; then, the parameters of DeepESN network are optimized by combining the kernel principal component analysis method with the JSO algorithm to construct the credit risk prediction and evaluation model of supply chain finance; finally, the effectiveness, robustness, and real-time performance of the proposed method are verified by simulation experiment analysis.RESULTS: The results show that the proposed method improves the prediction efficiency of the prediction model.CONCLUSION: The problems of insufficient scientific construction of index system and poor efficiency of risk prediction model of B2B E-commerce transaction size prediction method are effectively solved.

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“…However, few scholars have studied the risk compensation effect under CGF. Cost-sharing contract claims the retailer shares a certain percentage of the supplier's production cost [23]. The revenue-sharing contract gives the supplier a percentage of the retailer's sales revenue at the end of the selling season [51].…”

mentioning

confidence: 99%

Additional contract selection and parameter design under supplier credit guarantee financing

Kang,

He,

Shi

et al. 2024

JIMO

Self Cite

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The essence of credit guarantee financing (CGF) is the risk sharing between the guarantor and financial institution. Inspired by the case of the CGF of Evergrowing Bank, this study aims to explore the risk compensation strategies and guarantee decisions for guarantors under CGF and provide decision support for the efficient operation of the supply chain CGF. Considering three kinds of risk compensation contracts, namely cost-sharing, revenuesharing, and quantity-flexibility, the Stackelberg game method is used to construct the supplier CGF model under the retailer's financial constraints. The results show that additional contract parameters, interest rate, debtor's initial capital, and implicit bankruptcy cost are the main factors affecting the credit guarantee coefficient decision. Besides, we find optimal additional contract parameters that can optimize the profits of supply chain members and complete the contract parameter design. The quantity-flexibility contract is the most effective strategy for the supplier to compensate for guarantee risk. However, the retailer's choice of additional contract depends on the initial capital or implicit bankruptcy cost. The main innovation of this study is that it endogenizes the credit guarantee decision and explores the details of the risk compensation contract. Further, the impact of implicit bankruptcy cost on CGF decision is also mentioned for the first time in supply chain finance. Our findings lead to recommendations for the optimal credit guarantee scheme and contract design of compensation for guarantee risk in the supply chain.

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Financing strategy selection and coordination considering risk aversion in a capital-constrained supply chain

Cited by 7 publications

References 58 publications

Pricing and Financing Strategies of Dual-Channel Green Supply Chain with Risk Aversion and Consumer Preferences

Pricing and Financing Strategies of Dual-Channel Green Supply Chain with Risk Aversion and Consumer Preferences

Research on Credit Risk Prediction Method of Blockchain Applied to Supply Chain Finance

Additional contract selection and parameter design under supplier credit guarantee financing

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