Research On Buyback Strategy Of Confirming Warehouse Financing In New Energy Vehicle Industry Based On System Dynamics

As China's subsidies for the new energy vehicle industry gradually decline,the concerning enterprises in the industry may face a more severe situation,especially for those small and medium-sized enterprises(SMEs)whose funding restrictions may be huge hindrance.Therefore,it's very important to actively play the role of supply chain finance in this industry.The present study mainly focuses on the buyback strategy under confirming warehouse financing(CWF)and it is hoped that through this research,the CWF can better help the SMEs in the industry and the related financial institutions.The present study designs two buyback strategies: one-time buyback strategy and decentralized buyback strategy.The first one means that the supplier repurchases all pledge stocks at once after the expiration of the dealer loan while the second one means that under the condition of a repayment delay period,the supplier can buyback the pledged inventory in proportion in multiple stages.Using the system dynamics,the simulation model of confirming warehouse financing in the industry has been constructed.Meanwhile,three scenarios are set according to the sales profit of dealers,and the sensitivity analysis is carried out by changing some initial conditions to observe the effect of different buyback strategies in different situations.According to the simulation results,with the increase of sales profit margin of dealers,the decentralized buyback strategy is better than the one-time buyback strategy for dealers,suppliers and banks.And based on the sensitivity analysis,the present study also indicates that in different situations,changes in parameters may also have a certain impact on the effectiveness of the buyback strategy.