TY - JOUR A2 - Yue, Xiaohang AU - Yang, Honglin AU - Yu, Ya AU - Zha, Yong AU - Yuan, Jijun PY - 2014 DA - 2014/07/13 TI - Optimal Financing Order Decisions of a Supply Chain under the Retailer's Delayed Payment SP - 764531 VL - 2014 AB - In real supply chain, a capital-constrained retailer has two typical payment choices: the up-front payment to receive a high discount price or the delayed payment to reduce capital pressure. We compare with the efficiency of optimal decisions of different participants, that is, supplier, retailer, and bank, under both types of payments based on a game equilibrium analysis. It shows that under the equilibrium, the delayed payment leads to a greater optimal order quantity from the retailer compared to the up-front payment and, thus, improves the whole benefit of the supply chain. The numerical simulation for the random demand following a uniform distribution further verifies our findings. This study provides novel evidence that a dominant supplier who actively offers trade credit helps enhance the whole efficiency of a supply chain. SN - 1024-123X UR - https://doi.org/10.1155/2014/764531 DO - 10.1155/2014/764531 JF - Mathematical Problems in Engineering PB - Hindawi Publishing Corporation KW - ER -