One Kind Of Supply Chain Coordination And Management Based On Delay-in-payment Contract

In the real economic life,middle-size and small enterprises play an important role in providing diversified products and services and enriching social life.Moreover,when national whole economy is in the decline stage,promoting medium-size and small enterprises'development will greatly contribute to boosting economic growth and increasing social employment.Nonetheless,owing to small scale and low credit rating,medium-size and small enterprises are usually difficult to gain loads from banks and other financing institutions.The general definition of delay-in-payment contract is that when retailer receives the goods from the supplier,he could pay for it after the permissible time.Such an action increases the elasticity of payment.And it could alleviate the situation of financial constraint of middle-size and small enterprises.What's more,delay-in-payment could be used to coordinate supply chain.Consequently,in practice,suppliers often offer delay-in-payment contract to retailers in order to coordinate supply chain.Adopting delay-in-payment not only attracts new retailers but also avoids lasting price competition.So,the paper investigates supply chain coordination and management by delay-in-payment.The models are classified into two cases,that is static condition and dynamic condition.Under static condition,as we know,in general many enterprises are reluctant to share his/her private information with other enterprises.Consequently,the paper addresses supply chain coordination by delay-in-payment under complete information condition and incomplete information condition.And we take into consideration that retailer's inventory's holding cost is his/her private information.Under static situation,the paper gets the sufficient conditions for coordination and investigates the relations between degree of coordination and wholesale price w?interest rate.Under dynamic condition,suppliers continuously deliver the goods to the retailers,thus in a decision-making cycle,capital's opportunity cost is changeable.Under dynamic situation,in order to reduce the risk of possible default,the paper assumes that the retailer's profit must be above some threshold.On this premise,the paper considers the supplier's problem under delay-in-payment.