The Influence And Coordination Of Capital Constraint On The Advertising Input Of The Retailer Under Revenue Sharing

Capital plays a very important role in the survival and development of businesses.Any business may have the problem of capital constraint.Therefore,how to alleviate the pressure of capital constraint of businesses has become a difficult problem that businesses need to overcome.The members of the supply chain,especially small and medium-sized enterprises are difficult to obtain financing from financial institutions.So there are many cases of internal financing in reality.This paper studies a two echelon supply chain system,which contains a single manufacturer and a single retailer.By game theory,this paper studies the influence and coordination of capital constraint on the advertising input of the retailer under revenue sharing,analyzes the impacts of the retailer's own capital on the supply chain advertising decisions and internal financing decisions,and provides theoretical references for internal financing.Firstly,the paper considers the influence of capital constraint on the advertising input of the retailer under revenue sharing and reveals the impacts of the retailer's own capital on the supply chain advertising decisions and internal financing decisions.The main results show that the retailer's financing decisions depend on the retailer's own capital.Within a certain range of retailer's own capital,both sides of the supply chain carry out internal financing.Secondly,the paper considers the coordination of capital constraint on the advertising input of the retailer under revenue sharing,and compares and analyzes the optimal decisions of both sides of the supply chain under cooperative advertising and non-cooperative advertising.The study shows that within a certain range of the proportion of revenue sharing,when the retailer has sufficient capital,cooperative advertising can coordinate the supply chain.When the retailer has the problem of capital constraint and obtains internal financing,cooperative advertising can coordinate the supply chain in most cases.However,within a certain range of retailer's own capital,cooperative advertising can harm the interests of the manufacturer and can't coordinate the supply chain.