Credit Risk Contagion of Supply Chain Based on Trade Credit

There are two kinds of different credit risks in the two-echelon supply chain with typical capital constraints. One is the credit risk of the supplier to the bank loan, and the two is the credit risk which is formed by the supplier to the retailer with the commercial credit. Based on the newsboy model under the assumption of correlation and contagion between these two kinds of credit risk analysis. Research shows that: the two types of credit risk between the intensity of the infection and the supplier's production costs are positively correlated.