Inventory Financing's Contract Optimization Of The Supply Chain Finance On The Sales Effort Cost-sharing

As one of significant innovative financial instruments,Supply chain finance and the contract mechanism of supply chain coordination has been valued.Wherefore inventory financing is a typical tool for supply chain finance service,widely applied in actual business.And it had rapid development in small and medium enterprises' businesses.Nevertheless,the speculative knowledge study based on supply chain finance of the inventory financing has fallen behind the practical businesses relatively.Emphasis is urgently expected to discuss and research in the field.Sales effort is closely related to consumer demand,retailer ordering quantity decision and the corresponding inventory policy.So the object of study in this paper is the optimization for buy-back contract of inventory financing considering the sales effort cost-sharing strategy,which is one of the contracts in the coordination mechanism of supply chain.Based on the summary of literature review,the paper expatiates on concerned theoretical background.Through contrastive analysis with the traditional financing vehicles,the connotation and influence of sales effort,development of inventory financing in supply chain finance and typical contracts in the coordination mechanism of supply chain has been generalized.By introducing the downside risk-controlling of bank and newsboy model,the thesis focuses on the buy-back contract design and supply chain coordination considering promotional efforts for inventory financing business under the risk control of commercial banks.Meanwhile through the instance analysis and numerical mode verification,the paper proves that inventory financing's sales effort shared buy-back contract does achieve optimization for the supply chain profits.