The Joint Financing in a Supply Chain

Abstract

As the growing of globalization the competition between each supply chain becomes fiercer However because of the economic variation and high bankruptcy risk the availability of credit financing is limited Supply chain finance (SCF) is proposed to ease the situation SCF includes solutions to make the cash flow in the supply chain efficiently used This research aims to increase the opportunities for obtaining bank loan to gain sufficient cash flow within entire supply chain and approach higher profit individually We propose a SCF scheme by joint bank financing with credit guarantee (JBF) To reveal the advantages of JBF we build mathematical models of bank financing separately (BFS) and JBF respectively The results show that under JBF the supply chain is able to approach higher order quantity and thus the profit of each member in the supply chain increases We further present numerical analysis of each member's profit under BFS and JBF In addition we demonstrate the bankruptcy risk of each order quantity the sensitivity analysis of demand market risk and the analysis of economic of scale

Date of Award	2019
Original language	English
Supervisor	Cheng-Chang Lin (Supervisor)