Supply chain coordination in Confirming Warehouse Financing. (April 2018)
- Record Type:
- Journal Article
- Title:
- Supply chain coordination in Confirming Warehouse Financing. (April 2018)
- Main Title:
- Supply chain coordination in Confirming Warehouse Financing
- Authors:
- Lin, Qiang
Su, Xuemei
Peng, Ying - Abstract:
- Highlights: A new SCF mechanism to coordinate the supply chain which aid a manufacturer that requires cash is proposed. Bank's interest rate is considered as an internal variable. We take the retailer's sales effort into consideration. Abstract: Numerous theories have been proposed to explore trade-credit in the presence of capital-constrained retailers. However, when manufacturers are also strapped for cash and can't afford the cost for long payback periods, trade-credit ceases to be operative. Confirming Warehouse Financing (CWF) is an innovative method of channel finance. It has shown great benefit in freeing up cash flow for both vendors and their retailers. While this new model was developed and tested empirically, it must also be examined through a theoretical perspective. For example, when demand is uncertain and affected by retailers' sales efforts, CWF, which typically requires complete buyback by the vendor, fails to properly coordinate the supply chain. This paper attempts to develop models to find the optimal mode under CWF to coordinate the supply chain. We examine three modified modes of CWF: (cash-advance discount compensation CWF, deposit withholding CWF and two-way compensation CWF). Our analytical results show that all three modes can achieve Pareto-Improvement, but only two-way compensation CWF can achieve proper supply chain coordination.
- Is Part Of:
- Computers & industrial engineering. Volume 118(2018)
- Journal:
- Computers & industrial engineering
- Issue:
- Volume 118(2018)
- Issue Display:
- Volume 118, Issue 2018 (2018)
- Year:
- 2018
- Volume:
- 118
- Issue:
- 2018
- Issue Sort Value:
- 2018-0118-2018-0000
- Page Start:
- 104
- Page End:
- 111
- Publication Date:
- 2018-04
- Subjects:
- Small-and Medium-sized Enterprises (SMEs) -- Confirming Warehouse Financing -- Supply chain management -- Channel Finance -- Sales effort -- Supply chain coordination
Engineering -- Data processing -- Periodicals
Industrial engineering -- Periodicals
620.00285 - Journal URLs:
- http://www.sciencedirect.com/science/journal/03608352 ↗
http://www.elsevier.com/journals ↗ - DOI:
- 10.1016/j.cie.2018.02.029 ↗
- Languages:
- English
- ISSNs:
- 0360-8352
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3394.713000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 11480.xml