Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7427409 | Transportation Research Part E: Logistics and Transportation Review | 2018 | 21 Pages |
Abstract
This paper investigates a supply chain where the retailer is capital-constrained and the supplier is risk-averse. The supplier's risk-averse behavior is gauged by Conditional Value-at-Risk method under two financing strategies: partial credit guarantee(PCG) and trade credit financing(TCF). We obtain the equilibrium solutions and characterize the preference of two financing strategies by the switching curves in two-dimensional space of credit guarantee coefficient and risk aversion degree. We find that there exists a region where TCF outperforms PCG for both players. Finally, we extend the model to the case in which both players are risk-averse and obtain similar results.
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Authors
Bo Li, Si-min An, Dong-ping Song,