Risk Migration In Supply Chain Inventory Financing Service

DOI: 10.4236/jssm.2011.42026   PDF   HTML     7,414 Downloads   12,906 Views   Citations

Abstract

Inventory financing affects the risks of both for banks and supply chain companies. Traditionally, supply chain research focus more on material flow than financial. We construct a supply chain financing risk-information migration model (RMM). In this model, we discussed the preconditions to adopt inventory financing when the enterprises are facing cash constraints. And we simulated the whole operate of supply chain and bank behavior with Matlab. The simulation result shows if loan conditions are satisfied, the total risk value is reduced. Risk migration happens in the financing process. In this process, information-risk proportions are more reasonable.

Share and Cite:

Z. Qin and X. Ding, "Risk Migration In Supply Chain Inventory Financing Service," Journal of Service Science and Management, Vol. 4 No. 2, 2011, pp. 222-226. doi: 10.4236/jssm.2011.42026.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] J. L. Cavinato, (1991), “Identifying Interfirm Total Cost Advantages for Supply Chain Competitiveness”, International Journal of Purchasing and Material Management, Vol. 27 No. 4, pp. 10-15.
[2] J. A. Buzacott, R. Q. Zhang, 2004. “Inventory management with asset-based financing,” Management Science Vol. 50, No. 9, 2004, pp. 1274-1292. doi:10.1287/mnsc.1040.0278
[3] T. Y. Choi and Y. Hong, “Unveiling the Structure of Supply Networks: Case Studies in Honda, Acura, and DailmerChrysler,” Journal of Operations Management, Vol. 20, No. 5, 2002, pp. 469-494. doi:10.1016/S0272-6963(02)00025-6
[4] D. M. Lambert and M. C. Cooper, “Issues in Supply Chain Management,” Industrial Marketing Management, Vol. 29, No. 1, 2000, pp. 65-84. doi:10.1016/S0019-8501(99)00113-3
[5] N. R. Srinivasa Raghavan and V. K. Mishra, “Short-term Financing in a Cash-Constrained Supply Chain,” International Journal of Production Economics, Vol. 11, No.14, 2009.
[6] D. Backus and J. Wright, “Cracking the conundrum,” Brookings Papers on Economic Activity, Vol.38, 2007, pp. 293-329.
[7] P. Jorion, “Value at Risk: The New Benchmark for Controlling Market Risk,” Irwin, Chicago, 1997.
[8] H. Sonnenschein, “Market excess demand functions,” Econometrica, Vol. 40, 1972, pp. 549-563. doi:10.2307/1913184

  
comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.