Optimal decision in a green supply chain: Bank financing or supplier financing

Luo, Ying; Wei, Qiang; Ling, Qihui; Huo, Baofeng

doi:10.1016/j.jclepro.2020.122090

Cited by 49 publications

(35 citation statements)

References 60 publications

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“…In conclusion, scholars on trade credit and bank loans and other credit policy do much research; however, most research aimed at traditional SC financing and operations. Some studies focused on GSCM under the capital constraint without considering green marketing efforts [5,48,52,53]. Meanwhile, some other studies discussed green marketing efforts without paying attention to retailers' capital constraints [9,16].…”

Section: Gsc Financing With Capital Constraintmentioning

confidence: 99%

“…Resembles the assumptions of [36,53] r n n = {m, b} Indicates the interest rate of the bank loan and trade credit respectively.…”

Section: Conceptual Definitions and Assumptionsmentioning

confidence: 99%

“…The manufacturer's production capacity can fully meet the retailer's market demand and aftermarket development; the product sales price remains unchanged [53]. 4.…”

mentioning

confidence: 99%

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Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts

et al. 2021

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The purpose of this research is to examine the green supply chain (GSC) financing decisions of manufacturers and capital-constrained retailers in order to establish a Stackelberg game model under decentralized and centralized decision-making. This paper studies the influence of retailers’ choice of trade credit or bank loan financing strategy on a GSC’s performance and analyzes their decision-making tendency. The results show that manufacturers should provide trade credit and participate in retailers’ financing decisions to avoid double marginal effects under both centralized and decentralized decision-making. Interestingly, the optimal value of green marketing effort and retailer order quantity was twice as high as the decentralized under the centralized decision, indicating that the centralized decision could better improve GSC’s financing efficiency. Especially when the trade credit financing strategy is feasible, this effect is more significant. Finally, the outcomes are verified through numerical simulation, which references GSC practitioners in management decisions.

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Section: Gsc Financing With Capital Constraintmentioning

confidence: 99%

“…Resembles the assumptions of [36,53] r n n = {m, b} Indicates the interest rate of the bank loan and trade credit respectively.…”

Section: Conceptual Definitions and Assumptionsmentioning

confidence: 99%

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Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts

et al. 2021

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“…The effect of bank loan financing on business performance in the one-on-one supply chain has been investigated, and the results showed that, when choosing a bank loan financing strategy, retailers with capital restraints can neither improve the efficiency of the supply chain nor achieve perfect coordination of the supply chain [ 12 , 13 , 14 ]. A single financing strategy can no longer meet the needs of corporate financing; therefore, many companies have begun to seek other external financing options, such as equity financing.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Equity Financing on the Performance of Capital-Constrained Supply Chain under Consumers’ Low-Carbon Preference

Zhang

Xiu

Shahzad

et al. 2021

IJERPH

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The reduction in carbon emissions by industrial enterprises is an important means for promoting environmental protection and achieving sustainable development. To determine the impact of carbon emissions reduction on supply chain operation and financing decision-making, in this study we designed three financing strategies, i.e., bank loan financing, equity financing, and hybrid financing (a combination of bank loan financing and equity financing), for a manufacturer (leader) and a low-carbon supply chain composed of a capital-constrained retailer, constructed Stackelberg game models, solved the equilibrium results under each financing strategy using the reverse recursion method, and revealed the financing preference of the supply chain member companies through comparative analysis. The results showed that the increase in the consumers’ low-carbon preference and equity financing ratio have positive impacts on supply chain equilibrium, a result that is opposite that for the impact of the interest rate of bank loan financing; additionally, the abovementioned three factors jointly determine the profit of the manufacturer of the low-carbon supply chain, while the retailer’s profit is affected by the equity dividend ratio. Finally, we present the conditions for the financing preference of the manufacturer and the retailer. The findings of this study can provide references for low-carbon supply chain companies to make appropriate management decisions.

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“…Compared with bank credit, the trade credit model in the supply chain can more effectively alleviate agency conflicts and enable retailers to achieve optimal inventory strategies at a lower cost without excessive investment under bank credit [18]. The profits of supply chain members, whether through supplier financing or bank financing, are higher than those in the non-financing model [19]. The supplier can also choose equity financing or debt financing when it has financial constraints.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF

Deng

Yang

2021

Sustainability

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In recent years, environmental protection has been paid more and more attention. Green credit policy (GCP) is one of the significant preferential policies for government to encourage enterprises to vigorously develop green projects. We are interested in the impact of the central bank’s GCP on the profits and optimal strategies of manufacturers and suppliers related to POF (purchase order financing). Specifically, we build a game-theoretical model consisting of a manufacturer, a bank and a green supplier and a non-green supplier. Furthermore, the optimal strategies of the manufacturer and suppliers when the bank or the government sets a carbon emission cap on suppliers are discussed. We come to some important conclusions about a GCP that promotes the development of green projects since it brings higher profits to both the manufacturer and suppliers than the lack of a GCP. Furthermore, the higher the production cost, the better the effect of a GCP. Under the carbon emission restrictions required by the government, the effect of GCP is weakened and the profits of the manufacturer and the suppliers are reduced to zero due to the gradually increasing delivery risks as production costs increase.

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Optimal decision in a green supply chain: Bank financing or supplier financing

Cited by 49 publications

References 60 publications

Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts

Optimal Financing Strategy in a Capital-Constrained Supply Chain with Retailer Green Marketing Efforts

The Impact of Equity Financing on the Performance of Capital-Constrained Supply Chain under Consumers’ Low-Carbon Preference

Impact of Green Credit Financing and Carbon Emission Limits on the Supply Chain Based on POF

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