Study Of The Capital Constraints Of The Supply Chain

The paper mainly concerns about the budget constraint problem in the supply chain management. The previous research related to supply chain mostly focuses on the material flows esp. the inventory control problem, but neglects the finance flows and financial problems. Here we regard the finance flows, material flows and information flows as a whole and research on their interrelationship. The supply chain system discussed in this paper is composed of three enterprises: manufacturer, distributor and retailer and we assume that the distributor may suffer from budget constraint. Due to the different operation patterns of different industries, three patterns are introduced and compared. In the later chapter, system dynamics is used as an effective modeling method to simulate the supply chain system and compare the performance of the enterprises.The results show that financing problems such as budget constraint would influence the performance of the enterprises in the supply chain. However, the role the enterprises play in the supply chain and the operation pattern are two main factors that determine the influence of the budget constraint. This paper also explains the reasons.This paper not only reveals the influence of budget constraint on the supply chain performance but also try to release the influence. This study absorbs the innovative concept 'Finance-Transportation and Warehouse Service (FTW)' and 'trade credit' to propose the solutions and build the mathematical model to prove their feasibility.The last chapter concludes this dissertation, summarizing the features of this research and pointing out some shortcomings that are worthy of being further corrected and studied.