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Supply chain finance: A three‐party decision model with suppliers' guarantees for retailers

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  • Bo Yan
  • Kun Luo
  • Li‐Feng Liu
  • Yan‐Ru Chen
  • Yi‐Fan Yang

Abstract

Under the premise that financing constraints frequently occur in the supply chain, this paper investigates the financing model of the supplier providing guarantee for the retailer under symmetric and asymmetric information. The optimal solutions of the retailer, the supplier, and the bank are studied by using the Stackelberg game. Results show that increasing the supplier's guarantee proportion can effectively improve the bank's reasonable margin rate and increase the supplier's profit. Under the condition of asymmetric information, the bank can increase the probability of credit loan in the supply chain by reducing the cost of spot check and setting up a reasonable fine limit.

Suggested Citation

  • Bo Yan & Kun Luo & Li‐Feng Liu & Yan‐Ru Chen & Yi‐Fan Yang, 2020. "Supply chain finance: A three‐party decision model with suppliers' guarantees for retailers," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1174-1194, October.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:7:p:1174-1194
    DOI: 10.1002/mde.3164
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    References listed on IDEAS

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    Cited by:

    1. Lingchen Liu & Yan Gu & Kung‐Cheng Ho & Chiu‐Lan Chang, 2022. "Customer concentration and analyst following: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 97-110, January.
    2. Shengying Zhao & Xiangyuan Lu, 2023. "Guarantee Mechanism in Accounts Receivable Financing with Demand Uncertainty," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    3. Daehyeon Park & Doojin Ryu, 2022. "Supply chain ethics and transparency: An agent‐based model approach with Q‐learning agents," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3331-3337, December.
    4. Ruifeng Gong & Jian Xue & Ruli Liu & Jinhua Zhou & Laijun Zhao, 2022. "A closed‐loop supply chain decision model considering corporate social responsibility and value‐added services," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1704-1720, September.
    5. Bo Yan & Yanping Liu & Zijie Jin, 2023. "Joint coordination contract for capital‐constrained supply chains under asymmetric information," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 251-270, January.

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