Research On Strategy Of Financial Supply Chain Coordination Under Confirming Warehouse Pattern

With the rapid development of the economy,many small and medium-sized enterprises(SMEs)have emerged in all walks of life in China.These SMEs occupy a very important position in the supply chain and have a profound impact on China's economic development However,the shortage of funds and difficulties in financing have restricted the development of SMEs and hindered the improvement of the overall competitiveness of the supply chain for a long time.Supply chain finance can align cash flow with product and information flows,improve cash flow management,speed up cash flow across company borders,reduce financing risks and costs,optimize financing decisions and provide new solutions for SMEs financingAs one of the supply chain financing patterns,the confirming warehouse financing pattern is a very promising financing pattern and can effectively improve the capital status of downstream companies in the supply chain.Based on this background,we take the confirming warehouse financing pattern as the research object,and explore its role in improving the performance of the supply chainWe build a two-level supply chain model consisting of supplier and retailer(s).The supplier is the core company in the supply chain and the retailer(s)is(are)capital constrained and in need of financing.First,we assume that there is only one supplier and one retailer in the market.At this time,the retailer has two financing patterns to choose from,the first is direct loan financing from the financial institution,and the second is confirming warehouse financing We compare the decisions of suppliers and retailers and the overall performance of the supply chain under two financing patterns.The result shows that under the confirming warehouse financing pattern,the wholesale price contract can achieve financial supply chain coordination,but may not achieve Pareto optimality.Specifically,the retailer's profit will increase,while the increase or decrease of the supplier' s profit will be related to the loan interest rate set by the financial institutionSecond,we extend the model to one supplier and two retailers.The two retailers have their own markets with the same demand function and are independent of each other without competition.At this time,the retailer can only choose confirming warehouse financing Retailers can also choose whether to agree on product deployment.If they agree,the remaining products of one retailer can be deployed to another retailer to make up for the shortage.We compare the impact of confirming warehouse financing pattern on supplier's and retailers'decisions and overall supply chain performance when retailers agree and disagree on product deployment.We find that under the confirming warehouse financing pattern,the wholesale price contract can achieve supply chain coordination regardless of whether the retailers agree on product deployment,and the wholesale prices set by the supplier are the same.However,the overall performance of the supply chain is better when the retailers agree on product deploymentIn addition,we also explore the effect of the conjunction of confirming warehouse financing pattern and supply chain contracts on the supply chain.The result shows that under the confirming warehouse financing pattern,the supplier can achieve Pareto optimality and supply chain coordination at the same time by providing revenue sharing contract or providing quantity discounts and repurchase subsidy contract togetherOur research shows that the confirming warehouse financing pattern can improve the overall performance of the supply chain.the conjunction of confirming warehouse financing pattern and supply chain contracts can increase the revenue of all participants in the supply chain.