Paper Info
Title
Optimal ordering and financing decisions under advance selling and delayed payment for a capital-constrained supply chain.
Abstract
We compare two different financing strategies, advance selling, and delayed payment, for a supply chain with a capital-constrained retailer facing uncertain demand. We firstly establish the retailer's optimal ordering and financing decisions under advance selling and delayed payment, respectively. In case of advance selling, we find that a strikingly different price discount rate should be adopted when the retailer changes to being capital-constrained. In case of delayed payment, we analytically investigate the impact of the retailer's capital level on her own performance. Furthermore, we identify the conditions under which advance selling strategy or delayed payment strategy is preferable. In particular, advance selling strategy is preferable for the retailer when she is sufficiently capital-constrained or customers are relatively price sensitive; In contrast, delayed payment strategy is preferable for the supplier and the entire supply chain when the retailer is sufficiently capital-constrained.
Year
DOI
Venue
2018
10.1080/01605682.2017.1415643
JOURNAL OF THE OPERATIONAL RESEARCH SOCIETY
Keywords
Field
DocType
Inventory,supply chain,advance selling,delayed payment,capital constraint
Computer science,Supply chain,Finance,Payment
Journal
Volume
Issue
ISSN
69
12
0160-5682
Citations 
PageRank 
References 
0
0.34
17
Authors
3
Name
Order
Citations
PageRank
Wei Jin18325.25
Jian-Wen Luo2152.64
Qin-Hong Zhang331.09