Decision Of Capital Constraints Supply Chain On Considering Retailer’s Effort

Most of China’s SMEs face capital constraints. Capital constraints is the development bottleneck of SMEs, due to poor operating stability and the low SME credit, so it’s difficult to finance from banks. Most of whose members in supply chain are small and medium enterprises. If one of the members in supply chain exists shortage of funds, it will make the entire supply chain imbalance, restricting overall supply chain efficiency and competitiveness. As upstream supply chain, the high credit supplier chose for retailers guarantee to inventory financing to banks, and take market share and financial risks by buy back contract. In real life, the sales effort appears everywhere. When funding constraints retailer has inventory financing and suppliers buyback guarantee, as suppliers need to repurchase the remaining product. This measure will share the risk of retailers, so retailers may take little work, which may not repay on time or product unmarketable. This will undoubtedly affect the income of other members of the supply chain. So consider the level of the retailer’s sales efforts in the case of financial constraints is necessary.To solve these problems, consider a single vendor, single funding constraints retailers and a single bank which consisting of supply chain, market demand random and affect by the level of sales effort. For suppliers to provide security for retailers to repurchase inventory financing business, we establish decision-making model of the members of the supply chain. This paper demonstrates the impact of sales effort on supply chain expected revenue. And analyze the relationship between sales effort level and retailers the optimal order amount, giving the corresponding expressions. Then the paper analyzes the impact of the repurchase price on the decision variable and the expected return, and focus on the impact of sales effort to the members of the supply chain, then through empirical testing.Based on the above empirical test, the paper get that the members of supply chain achieve maximize profit on different sales efforts. In order to encourage retailers to put more effort level, the suppliers designed to provide cost-sharing and transfer contract model for retailers pay double incentive. The supplier in the supply chain pay for part of the effort cost for retailers, and the retailers gives a certain amount of payment Transfer to Bank. The paper analyzes the expected return of the members in supply chain, which improves overall performance and profitability of the supply chain.The paper acquires the conditions of supply chain coordination, And u se the subsidy rate for suppliers and retailers to discuss the issue of profit distribution supply chain.Finally, numerical examples are conducted to validate conclusion, and analysis on the impact of changes in model parameters on the supply chain members of corporate profits.