TAILIEUCHUNG - Quick response strategy under the financial constraint

In this study we model a financially constrained two-level supply chain consisting of a financially-deficient retailer and a bank. In this supply chain, the supplier can sell a product at two wholesale prices to the retailer before and during the sales season, respectively. | Quick response strategy under the financial constraint Accounting 6 2020 307 316 Contents lists available at GrowingScience Accounting homepage ac Quick response strategy under the financial constraint Jinpyo Leea aCollege of Business Administration Hongik University Seoul South Korea CHRONICLE ABSTRACT Article history The major challenge which the financially insufficient firm tries to overcome is the uncertain demand Received November 28 2019 during the sales season and the possible bankruptcy due to the lower demand than the initial order Received in revised format quantity. Most traditional studies on the operational decision problem address this challenge by December 26 2019 assuming that the retailer has enough capital to procure as many products as necessary. However Accepted January 28 2020 Available online small and medium size firms with insufficient capital or even startup companies are generally February 2 2020 financially constrained for procuring or producing the product. Thus to address the financially Keywords constrained problem in this study we model a financially constrained two-level supply chain Bank credit consisting of a financially-deficient retailer and a bank. In this supply chain the supplier can sell a Financially constrained supply product at two wholesale prices to the retailer before and during the sales season respectively. Then chain the retailer makes an initial order to the supplier with this loan from the bank and then sells the product Newsvendor to its customers at a selling price during the sales season. Moreover if the realized demand is more Quick response than the initial order quantity the retailer can make the second order at a higher wholesale price than Stackelberg game the initial wholesale price. The analytical results from this model can be summarized as follows First the retailer s optimal initial ordering decision is a non-increasing function of the bank s decision interest rate. .

• Kế toán - Kiểm toán
• Two level supply chain
• Financially deficient retailer
• Financially constrained supply chain
• Quick response strategy
• Financially deficient retailer