A Bargaining Model with Supply Uncertainty under Credit Guarantee Mechanism
Date Issued
2012
Date
2012
Author(s)
Wu, Zheng-Yuan
Abstract
Nowadays, supply chain usually develops a model to fulfill the customer’s order. The model is the retailer with larger scale outsources the order to the smaller supplier to meet the customer’s demand.
Unfortunately, suppliers often face the problem of lacking financial support, which leads them unable to deliver their product to retailer on time or to violate the contract. It will erode the whole supply chain’s operation effectiveness and its own profit. How to help those suppliers get the financial support without difficulty and to avoid the above situation is a crucial issue.
The research bases on the model named “Firefly Counterpart Guarantee” attempting to use the basic framework to build a whole new credit guarantee mechanism. Besides, under the mechanism we discuss the bargaining behavior between the supplier and the retailer. The new mechanism begins from the retailer who founded credit guarantee for supplier actively. Follow the way it can remove of the role government played and Let the supplier can borrow the financial support from bank with lower interest rate and cost because of the retailer’s credit guarantee. By this mechanism it can also help increase the total supply chain’s profit and welfare.
The research shows that the retailer and the supplier should cooperate much more tightly to increase the whole supply chin’s profit. Besides, the retailer and the bank should pay much more attention while they are deciding the loan-to-value (LTV) since value of LTV no matter too high or too law will both damage the whole supply chain’s profit severely.
Subjects
Small and Medium Enterprise
Credit Guarantee
Firefly Counterpart Guarantee
Type
thesis
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ntu-101-R99741051-1.pdf
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