Supply Chain Financing Strategy Under The Guarantee Of The Core Enterprise

Small and medium enterprises (SMEs) have important position in the na-tional economy of China. However, the liquidity are limited generally for those smaller SMEs. Because of the reasons, little secured assets and lack of credit and high regulatory costs, it is difficult for the smaller SMEs to obtain loan financing from banks and other financial institutions. When the SMEs faced with shortage of funds, it would be difficult for them to get help of financing successfully from banks and other financial institutions, then the supply chain finance act as an important means to solve the shortage of funds for many small and medium sized retailers.This thesis has studied the secondary supply chain system which is consists of a supplier and retailer. Analyzing whether the sub-suppliers need to extract commissions. Stackelberg game has be used to study supply chain financing strategy under the core business’s guarantee. The main contents are as follows:Considering the case of random market demand, an expected profit maxi-mization model has been established for retailers and suppliers respectively. The thesis has solved the optimal order quantity of retailer and the optimal wholesale of suppliers, then has got the conclusions that the financing services can create new value for the supply chain.Considering that suppliers retail request for retailer’s sales commission in order to compensate the unsalable risk-sharing, the problems which are supply chain financing conditions have been solved,optimal order quantity of retailer and optimal wholesale of vendor based on established mathematical model. The results show that the financing services can make new value for supply chain, and it also show that commission can increase the profits for suppliers.