Optimal Financing,Production And Operations Strategies Of Retailers Under Random Demand With Inventory Financing

With the improvement of consumption level in modern society,products have a short life cycle and random demand characteristics become greater in number,this gives many small and medium-sized enterprises and retailers has brought the huge challenge,especially in terms of money.The development of the supply chain finance is an effective way to solve this dilemma,the purpose of this paper is to consider funding constraints and by combining retailers attitude to risk factors,providing quantification model for small and medium-sized enterprises and the retailers for optimal financing and production order decision,thus provide a reference for the decision-making.Under the background above,this paper modeling four kinds of situations in the real life,they are a risk neutral retailer profit maximization model,a risk neutral retailer maximize profit model,a risk averse retailer profit maximization model and a risk averse retailer maximize profit model.By solving the above four types of model and analyzing the corresponding solution,we learn that when financing costs F get higher,bank lending rate r get higher or when the bank gives the lower loan to value,retailer with risk neutral attitude or risk averse attitude will tend to reduce orders and financing,while retailer with risk averse attitude decisions more conservative.Next we give a numerical example,verified that maximum profit is not equal to the largest profit margins,when financing costs F get higher,bank lending rate r get higher or when the bank gives the lower loan to value,the retailer's profit will fall.The biggest innovation of this paper is the consideration of the retailer's risk attitude,and in the establishment of the objective function considering the profit maximization,this makes the study of this paper more practical and more guiding significance.