In the paper the problem of the supply chain expected profit maximization using a coordinating contract in condition of one of the counterparties being financially constrained is considered. The solution is derived for a two-echelon supply chain assuming product demand being distributed as uniformly. A revenue-sharing contract with bank financing and a modified revenue-sharing contract with trade credit are explored. It is stated that none of them is coordinating, as supplier's expected profit maximum is not attained. Conditional supply chain coordination using a modified revenue-sharing contract with trade credit is considered if supply chain and retailer's expected profits are maximized and supplier's expected profit exceeds that under the modified wholesale-price contract with trade credit and the revenue-sharing contract with bank financing. It is proved that the problem of the supply chain expected profit maximization under the assumptions made can be solved using a modified revenue-sharing contract with trade credit financing.

Original languageEnglish
Title of host publicationANNUAL GSOM EMERGING MARKETS CONFERENCE 2020. Conference book
Place of PublicationSPb.
PublisherИздательство Санкт-Петербургского университета
Pages172-177
StatePublished - 2020
EventGSOM Emerging Markets Conference -2020 - СПбГУ, St. Petersburg, Russian Federation
Duration: 11 Nov 202018 Nov 2020
Conference number: 7
http://gsom.spbu.ru/emc
http://«Human resources and culture within corona-crisis»

Conference

ConferenceGSOM Emerging Markets Conference -2020
Abbreviated titleGSOM EMC 2020
Country/TerritoryRussian Federation
CitySt. Petersburg
Period11/11/2018/11/20
Internet address

ID: 76391801