Research Article

Inventory Financing with Overconfident Supplier Based on Supply Chain Contract

Table 1

Decision variables and model parameters.

Decision variable of the Bank
the loan-to-value ratio
Decision variable of the supplier
the wholesale price
Decision variable of the retailer
the order quantity of the retailer, is order quantity with overconfident supplier, is order quantity with rational supplier
Parameters
the deposit interest rate
the loan interest rate which include all expenses incurred during the pledge period
the sale price of the product
the cost of the product
the buyback price of the product
the salvage value of the product
the period of the inventory pledge loan contract, the unit is year, value range is