Applying the concept of financing warehouse on an integrated model of fund and product flows
Date Issued
2008
Date
2008
Author(s)
Mao, Chung-Yu
Abstract
Financing warehouse is a new business model which combined fund and product flows. In the model of financing warehouse, firms can hand over its personal properties, such as manufacturing material and inventory to third-party logistic company. The bank provides loan which the firms need based on the characteristic and value of the properties. Besides warehousing service, the third-party logistics company is also responsible for monitoring the conditions of product flows, and providing all kinds of information the bank needs.ince that financing warehouse is such an innovation business model which includes the criteria for enterprise’s fund and product flows, there are few literatures simultaneously considered the limitations from both sides. Moreover, the financing targets of financing warehouse contain the merchandises of the firms’ daily sales. This causes the fluctuation of commodity price to be the major influence on the performance generated by the financing warehouse. Therefore, this research dedicates to establish a quantitative model, which considers the limitations of both fund and product flow sides, and reveals the difference of commodity price fluctuations, to investigate the suitable environment of financing warehouse.ccording to the results, financing warehouse can be most effective for firms, when the pattern in the commodity each period of purchasing price rise, in the selling price invariable situation. The industry in which commodity purchasing price rising-scope is larger than the selling price rising-scope, the financing amount of the firms with financing warehouse, is higher than the industry in which commodity selling price rising-scope to be larger than the purchasing price rising-scope. Namely, the industry in which the purchasing price rising-scope is larger than the selling price rising-scope, such as commodity industry, financing warehouse can be most effective for firms.n addition, this research found that, the lower the power of firms in channel is, more eager it is to finance with financing warehouse. When the bank is willing to set a smaller inventory-financing multiplicator, the average profit of the financing firm will be smaller, but the total financing amount greater. In the opposite, when the bank is willing to set a higher inventory-financing multiplicator, the average profit of the financing firm will be higher, but the total financing amount fewer. When the variation of commodity demand is large, the total financing amount of the financing firm will be greater, and the average profit higher.
Subjects
financing warehouse
inventory financing
Type
thesis
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