Study On Supply Chain Coordination Based On Funding Constraints Of Retailers

SMEs play an extremely important role in social development. However, most of China’s SMEs are facing trouble getting financing. Because of their low social status, credit rating and the expected development, it is difficult to get loans from the bank directly. And usually they cannot get the trust and security of large enterprises. SMEs financing becomes extremely difficult which hinder its further development. When SME has the trouble of financing, it not only restrict their own development, but also will affect the profitability and competitiveness of other members of the enterprise in the supply chain. Therefore, it has become an urgent need to rease the financial pressure of SMEs financing. It can improve overall operational efficiency by coordinating the supply chain.This paper studies on the coordination of the supply chain when the retailer has the financing difficulties base on stochastic demand. It considers a single cycle by a single upstream supplier and a downstream retailer consisting of a single vendor system in which providers as a core business. On the reality of retailers face the trouble getting the shortage fund, this paper consider supply chain financing and external financing coordination within the two modes. Internal financing is the retailer needs to achieve before ordering, adequate funding for production and suppliers to provide products to retailers, allowing retailers to demand payments to suppliers to achieve before. The external financing is the retailer supply chain financial aid supplier to provide credit guarantees to obtain loans from banks. Based on the two financing models, this paper established a mathematical model to the members of the supply chain expected profit maximization as the objective function, respectively, to obtain the conditions of supply chain coordination can be achieved, and the coordination of the conditions for analysis.Then, by the comparison of the two financing models, the paper got the factors kind of financing model better coordination. Because of the financing costs, the effect of internal coordination financing model is better.Finally, the two financing numerical models to verify the conclusions of the study, the sensitivity of the relevant parameters of the model are analyzed and discussed the impact of the two financing modes of supply chain coordination changes related parameters, and then compare the two financing appropriate mode.The conditions of this study was to coordinate internal and external financing mode enriches the theory of supply chain coordination, in order to ease the financing problems of SMEs in China, enhancing the competitiveness of the supply chain to provide some reference and basis.