Single item stochastic lot sizing problem considering capital flow and business overdraft

This paper introduces capital flow to the single item stochastic lot sizing problem. A retailer can leverage business overdraft to deal with unexpected capital shortage, but needs to pay interest if its available balance goes below zero. A stochastic dynamic programming model maximizing expected final capital increment is formulated to solve the problem to optimality. We then investigate the performance of four controlling policies: ($R, Q$), ($R, S$), ($s, S$) and ($s$, $\overline{Q}$, $S$); for these policies, we adopt simulation-genetic algorithm to obtain approximate values of the controlling parameters. Finally, a simulation-optimization heuristic is also employed to solve this problem. Computational comparisons among these approaches show that policy $(s, S)$ and policy $(s, \overline{Q}, S)$ provide performance close to that of optimal solutions obtained by stochastic dynamic programming, while simulation-optimization heuristic offers advantages in terms of computational efficiency. Our numerical tests also show that capital availability as well as business overdraft interest rate can substantially affect the retailer's optimal lot sizing decisions.Comment: 18 pages, 3 figure

An innovative business model based on the integration of finance and logistics operations

This article advances a new logistics financing model based on the notes receivable. This is a written promise to receive a stated amount of money in future. The article describes the structure and key processes of the model, and analyses the roles of the involved stakeholders. In order to enhance understanding, the article compares the model with a loan financing model, establishes a game model based on logistics enterprise financing, studies the strategies in the process of investment and financing, and concludes by defining its feasible region. This involves comparing the expected net revenues of different stakeholders in the two models. Based on the results, the paper analyses the financing process of a logistics enterprise in Shanghai and determines the optimal financing strategy. This paper is an attempt to improve business innovation in logistics financing and provides a sensible solution for the integrated logistics and finance services. This can effectively improve the stakeholders’ profit

An innovative business model based on the integration of finance and logistics operations

This article advances a new logistics financing model based on the notes receivable. This is a written promise to receive a stated amount of money in future. The article describes the structure and key processes of the model, and analyses the roles of the involved stakeholders. In order to enhance understanding, the article compares the model with a loan financing model, establishes a game model based on logistics enterprise financing, studies the strategies in the process of investment and financing, and concludes by defining its feasible region. This involves comparing the expected net revenues of different stakeholders in the two models. Based on the results, the paper analyses the financing process of a logistics enterprise in Shanghai and determines the optimal financing strategy. This paper is an attempt to improve business innovation in logistics financing and provides a sensible solution for the integrated logistics and finance services. This can effectively improve the stakeholders’ profit

Research on Ordering Strategy of Capital-Limited Retailers under Stochastic Market Demand

Under the condition of capital constraint on retailer, the retailers can effectively alleviate the funds shortage by delay payments and financing to third party financial institutions. This method will improve the profit of retailer and the performance of the csupply chain. Newsboy model under conditions of permissible delay payments, considers the capital structure of the company in the study of financing problems, and research two-stage supply chain system consisting of suppliers and retailers. An optimal order strategy model of the retailer is constructed, and the Analytical solution of this model is obtained. Then, this paper obtains a series of useful management conclusions through sensitivity analysis

Adopting Supply Chain Financial Solutions for the Risk Associated with Supply Chain Financial Flows

The main aim behind this empirical research is to investigate the impact of the adoption of the supply chain financial solutions on the supply chain financial flows of manufacturing firms listed in Indonesian Stock Exchange. In addition to that the study has also investigated the moderating role of cash conversion cycle in the relationship between supply chain financial solutions and supply chain financial flows. To achieve the objective of the study we have employed the panel data method and have used the linear repression and hierarchical regression techniques. The final sample comprise of 756 firm year observations over the period of 6 years from 2012-2017.teh findings of the study have shown an agreement with the proposed findings of the study. The cash conversion cycle appears as strong moderator. In author knowledge this is among few pioneering studies on this issue and will be helpful for future policy makings

Supply chain finance : a conceptual framework to advance research

Supply Chain Finance (SCF) arrangements aim to add value by taking a cooperative approach to financing in the supply chain. SCF has recently enjoyed considerable attention from industry, and providers of capital and technology are investing in platforms to facilitate new applications. A limited number of theoretical and empirical studies on the topic have been published. Current trends suggest, however, that the landscape of SCF is becoming increasingly complex and diverse. We describe some key developments and their implications for firms that (may) implement an SCF arrangement. In particular, we show that strategic and tactical considerations may impact the value of these arrangements. Failure to recognize alternatives and associated trade-offs may entail missed opportunities for firms. We present a framework that positions SCF concepts and shows the need for further research. We conclude with observations on managerial relevance

A multi-period multi-product stochastic inventory problem with order-based loan

This paper investigates a multi-product stochastic inventory problem in which a cash-constrained online retailer can adopt order-based loan provided by some Chinese e-commerce platforms to speed up its cash recovery for deferred revenue. We first build deterministic models for the problem and then develop the corresponding stochastic programming models to maximize the retailers' expected profit over the planning horizon. The uncertainty of customer demand is represented by scenario trees, and a scenario reduction technique is used to solve the problem when the scenario trees are too large. We conduct numerical tests based on real data crawling from an online store. The results show that the stochastic model outperforms the deterministic model, especially when the retailer is less cash-constrained. Moreover, the retailer tends to choose using order-based loan when its initial available cash is small or facing long receipt delay length