Abstract
Bank credit and trade credit are two types of financial formats in a supply chain. We consider a two-echelon supply chain with one supplier and one capital constrained retailer. By formulating the retailer’s and the supplier’s objective functions respectively, we find that the preference of credit formats for the retailer and the supplier are different and it depends on the credit interest rate. We also do some sensitivity study on the preference of financial formats to demonstrate our conclusions.
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Acknowledgements
The work described in this paper was supported by the National Natural Science Foundation of China [grant numbers 71872064, 71671119, 71772063, and 71471125]; in part by the Shanghai Pujiang Program [grant number 18PJC025]; in part by the Philosophy and Social Science Research Grand of Jiangsu Province [grant number 2016SJB630108]; in part by the China Postdoctoral Science Foundation [grant numbers 2016|T90500, 2015 |M580469, 2011M500745], and the Jiangsu Postdoctoral Science Research Foundation [grant number 1601249C].
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Tao, F., Jiang, Q., Wang, YY., Bian, J., Cheng, Y. (2020). Bank Credit Versus Trade Credit: The Preferences of Financial Formats for Supply Chain Members. In: Li, X., Xu, X. (eds) Proceedings of the Seventh International Forum on Decision Sciences. Uncertainty and Operations Research. Springer, Singapore. https://doi.org/10.1007/978-981-15-5720-0_9
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DOI: https://doi.org/10.1007/978-981-15-5720-0_9
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