Research Article

Optimal Financing Decision in a Contract Food Supply Chain with Capital Constraint

Table 1

Introduction of the symbol.

SymbolSymbolic meaning

The minimum purchase price of rice
, , and , respectively, represent the planned input of the family farm when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
, , and , respectively, represent the actual yield of the family farm when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
and , respectively, represent the loan interest rate of the bank when bank financing with bank participation only and when bank financing with “government, bank, and insurance” coparticipation
, , and , respectively, represent the rice purchase price given by the food processing enterprise when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
, , and , respectively, represent the market price of rice when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
and , respectively, represent financing amount when bank financing with bank participation only and when bank financing with “government, bank, and insurance” coparticipation, and ,
and , respectively, represent the threshold of actual yield of the family farm when bank financing with bank participation only and when bank financing with “government, bank, and insurance” coparticipation, ,
and , respectively, represent the interest rate from the bank when bank financing with bank participation only and when bank financing with “government, bank, and insurance” coparticipation
Average return of the capital markets
and , respectively, represent the threshold of yield random when the supply chain disruptions in the case of bank financing with bank participation only and in the case of bank financing with “government, bank, and insurance” coparticipation, and ,
The bank loan subsidy rate given by the government to encourage banks to lend
The premium rate given by the insurance company
The insurance subsidy rate given by the government
, , and , respectively, represent the profit of the family farm when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
, , and , respectively, represent the profits of the food processing enterprise when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
, , and , respectively, represent the expected profits of the family farm when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation
, , and , respectively, represent the expected profits of the food processing enterprise when there is no financing, when bank financing with bank participation only, and when bank financing with “government, bank, and insurance” coparticipation