||The Joint Financing in a Supply Chain
||Department of Transportation & Communication Management Science
Supply chain finance
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.
Outline of content V
List of Table VII
List of Figure VIII
Chapter 1 Introduction 1
1.1 Research background and motivation 1
1.2 Purpose and research question 3
1.3 Research framework 3
Chapter 2 Literature review 6
2.1 Supply chain finance 6
2.1.1 Supply chain internal finance 7
2.1.2 Supply chain external finance 11
2.1.3 Supply chain internal and external finance 12
2.1.4 Conclusion 17
2.2 Cash flow models 23
2.3 Line of credit and interest rate of bank loan 30
2.4 Conclusion 32
Chapter 3 Mathematical Model 33
3.1 Assumption and research range 33
3.2 Notations 34
3.3 Bank financing separately (BFS) 35
3.3.1 Mathematical Model 36
3.3.2 Derivation 38
3.4 Joint Bank financing with credit guarantee (JBF) 39
3.4.1 Mathematical Model 41
3.4.2 Derivation 42
3.5 Solving algorism 44
Chapter 4 Numerical Analysis 45
4.1 Maximum profit under BFS 45
4.2 Maximum profit under JBF 46
4.3 Comparing BFS and JBF 47
4.4 Analysis of bankruptcy 48
4.5 Analysis of market demand and R’s profit 51
4.6 Analysis of economic of scale 52
Chapter 5 Conclusion 55
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