The Study On The Optimal Producing And Ordering Policies For Enterprises Based On Supply Chain Finance

Supply chain finance as an innovative financial services is developing rapidly in China.The core corporate in the supply chain injects its credit into the upstream and downstreamsmall and medium-sized enterprises through supply chain finance. In this way, it helps theupstream and downstream enterprises to get the bank loan. The bank supervises theseemterprises to use money only for the purchase of raw materials, production and sales. Thesales revenue is the primary source of repayment for the bank loan. The fund enjoys a highefficiency in the supply chain operation. So the supply chain finance helps the core enterprisesand SMEs to get a new way of financing and the bank to make a new profit growth style. Itwill bring a win-win situation among the bank, the core corporate and SMEs.The paper analyzes the characteristics of the supply chain finance firstly. The loan fundscome into the supply chain operation directly and circle in the chain. As the loans repay fromthe sales revenue, the supply chain finance has the feature of self-liquidating. The coreproduct of supply chain finance is financial bills, like commercial acceptance bills, banker’sacceptance bills. The amount of money,the timing for the loan and the lending rate for supplychain finance all are based on the transactions between the core corporate and SMEs. Thereare three types of supply chain finance, the supplier chain financing, the distributor chainfinancing and the goods right pledge financing. The models of supplier chain financing anddistributor chain financing are built in this paper.In the distributor chain financing, the core enterprise uses its own credit to help itsdownstream dealer to get financing support from the banks. The loan can just use for purchasethe goods provided by the core corporate. This kind of financing is always applied in theindustries of auto, steel, appliances which use dealers system in supply chain. The enterprisessuch as FAW-Volkswagen, Shougang shares and Gree have already used the distributor chainfinancing to help the upstream and downstream enterprises to get the bank loan.The supplier chain financing uses the credit of core enterprise to help its upstreamsupplier to get bank loan. The loan funds will be supervised by the bank. The supplier couldonly use money for the purchase of raw materials and production. The core enterprises whojust focus on brand management and market promotion often outsource the production. So,they would like to use supplier chain financing to support their suppliers for production, suchas Li Ning Sports Goods company in the sports goods industry, Apple in the high-techindustry.Under the assumption of deterministic demand and the capital of the suppliers and dealers are limited, the mathematical models are built separately under the profitmaximization of dealers and suppliers. Compared with the profit that gained from theenterprises’ own funding and the profit gained from bank loan, the optimal ordering policy bydealer and the optimal production policy by supplier can be drawn. Through the constructionof theoretical models and numerical examples, several conclusions are drawn: supply chainfinance can help distributors and suppliers increase revenue; the corporate lending decisionsare determined by the timing of bank loan; the maximum rate of financing guarantees affectthe enterprises decisions for bank loan; enterprises tend to use their own funds to satisfy thesales and production if their funding are adequate.