The Supply Chain Inventory Optimization Model Based On Credit Risk Research

With the development of economy and the progress of the society, the replacement of goods is getting more and more quickly, the competition in market is more and more intense. Suppliers will allow retailers deferring payment in order to attract more retailers. Besides providing retailers more capital gains, trade credit also brings opportunity costs and bad debt losses to supplies because of credit risk. Therefore suppliers should select appropriate marketing strategies to avoid trade credit. Cash payment, cash discounting and deferred payment are the common marketing strategies for suppliers. Suppliers select right payment strategy to stimulate retailers increasing ordering quantity based on the differences of retailers’ordering quantity, ordering cycle and ordering cost. Considering different payment strategies the suppliers offered, retailers will seek payment strategy one can minimize the total cost and maximize self-interest. Because inflation and many other economic variables exist in real economy, the retailers’determination on the goods’ ordering cycle and ordering quantity must take the impact of inflation into account. Besides, the inflation and many other economic variables are also related to retailers’ determination on inventory-control strategy. It shows that the inflation’s visible impact on the supply chain can not be ignored.Under the background of the trade credit, this article studies the optimal inventory strategy based on the credit risk with three different conditions of maximizing the credit pay’s risk, the payment strategy and inflation, respectively. This article’s main content and conclusions are summarized as follows:1) Elaborating the relevant credit risk theory, building models aimed at the single level of trade credit and two levels of trade credit, respectively, then solving out the suppliers’largest credit risk point.2) Proposing that suppliers will select different payment strategies to reduce the credit risk, through constructing the inventory-control model, giving the demonstration of suppliers’optimal strategy for different payments’means of the cash payment, price discount, deferred payment and so on; and then building a retailers’payment strategy model for various suppliers’payment policies.3)From the perspective of the retailers, giving the inflation’s impact on supply chain,as bringing credit risk to supply chain, aimed at single level of trade credit and two levels of trade credit, establishing the retailers’optimal order strategies, respectively.