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Table 1 Comparison of the proposed model and the literature on incorporating SCC and operations-finance interface

From: A joint inventory–finance model for coordinating a capital-constrained supply chain with financing limitations

References

Inventory policy

Supply chain (SC) structure

Operations decisions

Coordination mechanism

Financial constraints

Product shortage

Financing options

Financial decisions

Objective function

Jaber and Osman (2006)

EOQ

Two-level SC: a supplier, a retailer

Single product

Retailer’s and supplier’s order quantities

Joint decision making (centralized decision making)

No financial constraint

Not allowed

TCF

Retailer’s payment time to the supplier

Due date of the interest-free period

Minimizing system costs

Yin and Xu (2010)

EOQ

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Joint decision making (centralized decision making)

Budget shortage

Not allowed

TCF

External financing

Retailer’s payment time to the supplier

Due date of the interest-free period

Financing mode selection

Minimizing system costs

Dada and Hu (2008)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Nonlinear loan schedule

Budget shortage

Not allowed

External financing

Bank’s interest rate

Profit maximization (Stackelberg game)

Lee and Rhee (2011)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Wholesale price

Contracts’ parameters

All-unit quantity discount

Buy-back contract

Two-part tariff

Revenue sharing contract

Budget shortage

Not allowed

TCF

External financing

Trade credit interest rate

Financing mode selection

Profit maximization (Stackelberg game)

Chen and Wang (2012)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Wholesale price

Delay in payment contract

Budget shortage

Not allowed

TCF

No financial decision

Profit maximization (Stackelberg game)

Moussawi-Haidar et al. (2014)

EOQ

Three-level supply chain: a supplier, a retailer, and a bank

Single product

Retailer’s order quantity

Joint decision making (centralized decision making)

Budget shortage

Not allowed

TCF

External financing

Retailer’s payment time

Cash balance

Financing mode selection

Minimizing system costs

Kouvelis and Zhao (2016)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Contract’s parameters

Revenue sharing contract

Budget shortage

Not allowed

External financing

Bank’s interest rate

Profit maximization (Stackelberg game)

Feng et al. (2015)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Contract’s parameters

Revenue-sharing-and-buy-back contract (RSBB)

Budget shortage

Not allowed

No financing option

No financial decision

Profit maximization (Stackelberg game)

Yan et al. (2016)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

The wholesale price

Partial credit guarantee (PCG) contract

Budget shortage

Not allowed

TCF

Bank credit financing

Bank’s interest rate

Profit maximization (Stackelberg game)

Xiao et al. (2017)

Newsvendor

Two-level SC: a supplier, a retailer

Single product

Retailer’s order quantity

Contract’s parameters

Generalized revenue sharing contract

Budget shortage

Not allowed

TCF

External financing

Trade credit interest rate

Profit maximization (Stackelberg game)

Johari et al. (2018)

Stochastic

Three-level SC: a supplier, a retailer, and a customer

Single product

Review period

Order-up-to-level

Retail price

Bi-level credit period contract

No financial constraint

Back-ordered

TCF

Credit period as the contract parameter

Profit maximization

Ebrahimi et al. (2019)

Stochastic

Two-level SC: a supplier, a retailer

Single product

Review period

Retailer’s promotional effort level

The safety factor of the retailer replenishment decision

Delay in payment contract

No financial constraint

Partially Back-ordered

TCF

Credit period as the contract parameter

Profit maximization

Devalkar and Krishnan (2019)

Deterministic multi-period

Two-level SC: a supplier, a retailer

Single product

Wholesale price

Delay in payment and reverse factoring contract

Financial market frictions (information asymmetry)

Not allowed

TCF

External financing

Credit period

The portion of early payment receivables

Profit maximization

Ding and Wan (2020)

Newsvendor

Two-level SC: a supplier, a manufacturer

Single product

Manufacturer’s order quantity

Supplier’s production quantity

Buy-back contract

Cost-sharing contract

Budget shortage

Not allowed

External financing

Advance payment

Bank’s interest rate

profit maximization (Stackelberg game)

The proposed model

EOQ

Three-level SC: multiple suppliers, an OEM, and an auto manufacturer

Multi-product

Order quantities of the OEM and each supplier

The OEM’s production quantity

Service level

Joint decision making (centralized decision making)

Budget shortage

Financing limitation

Lost sales

TCF

External financing

Pre-payment

Financing mode selection

Debt amount

Payment time to suppliers

Due dates of the interest-free periods

Prepayment rate of the auto manufacturer

Two objectives:

Minimizing system costs

Maximizing the satisfied demand

(bi-objective optimization)