Issue |
RAIRO-Oper. Res.
Volume 58, Number 4, July-August 2024
|
|
---|---|---|
Page(s) | 2669 - 2682 | |
DOI | https://doi.org/10.1051/ro/2024051 | |
Published online | 02 July 2024 |
Optimal strategies for supply chain with credit guarantee using CVaR
1
School of Business, Suzhou University of Science and Technology, Suzhou 215009, P.R. China
2
School of Economics, Guangdong University of Foreign Studies South China Business College, Guangzhou 510545, P.R. China
3
School of Engineering and Applied Science, Western Kentucky University, Kentucky 42101, USA
* Corresponding author: jiangxia1107@163.com
Received:
3
December
2022
Accepted:
23
February
2024
In this paper, we explore optimal strategies of a supply chain consisting of one manufacturer, one capital-constrained retailer and one bank, where the bank provides loans to the retailer due to credit guarantees. However, there are default risks if the retailer can not repay the loans. Using conditional value-at-risk (CVaR) to describe risk aversion of the retailer, optimal order quantities of the retailer and optimal wholesale prices of the manufacturer are obtained by solving a Stackelberg game model, where the manufacturer is a leader and the retailer is a follower, respectively. Our numerical results show that the default probability of the retailer are proportional to optimal wholesale prices of the manufacturer. It implies that when the default probability of the retailer is high, the manufacturer should reduce the default risk by setting higher wholesale prices to avoid a burden of a substantial guarantee. Thus, our results can serve as insights for decision-makers of supply chain management.
Mathematics Subject Classification: 90B05 / 90B30
Key words: Supply chain / capital constraint / default risk / credit guarantee / conditional value-at-risk
© The authors. Published by EDP Sciences, ROADEF, SMAI 2024
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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