Research Financing Contract Between The Companies Within The Supply Chain

With the rapid development of technology and increasingly fierce competition in the market, the number of enterprises on supply chain is becoming more and more. Also, the relationship between these node enterprises of supply chain is more complex. Not only they compete with each other, but also more nodes enterprises cooperate with others in order to achieve common interests. Therefore, competition among enterprises almost has been replaced by competition between supply chains. However, the financing difficulties of small and middle enterprises in supply chain is very prominent, it will directly lead to reduced competition in the supply chain. So, how to improve the mode of financing within the supply chain and enhance their cooperation as well as obtain maximum benefits at the same time is worth studying.The current study is aimed at investigating the supply chain management and how the centralized decision making can obtain maximum profits when the companies invest in small enterprises. Moreover, the study highlights the ways to maximize profits through centralized decision making and discusses the supply chain management from both, supplier’s and retailer’s perspective. Traditional function of product demand is only related with the price of products. As the amount of investment is an important decision making variable, so we have added it to product demand function. As a result, the investment will improve the core competitiveness of the supply chain and the consumers’product experience. At first, this paper discusses how to make a centralized decision to maximize the benefits through direct internal financing in the supply chain, and gets the optimal amount of product price and the best investment decisions. Secondly, considering the leading supplier in the supply chain internal interest distribution, when the total profit of the supply chain is equal to the maximum profit of the centralized decision, the profit of the supply chain is found to be contrary to the best centralized decision strategy in the traditional equity method, so the transfer payment is added to the process of supply chain coordination to have a reasonable profit distribution.Finally, improving the retailer leading supply chain’s wholesale price contract by adding paymenttransfers, so as to ensuring the supply chain to obtain the biggest profit and the two participants have bargaining space to obtain satisfied profit.The significance of this paper is that it considers the way of supply chain financing is not the traditional mode, but the core enterprise investment to small and medium-sized enterprises, and strengthens the balance of the income distribution by transfer payments, supply chain system coordinated can work more efficient.