A Supply Chain System with Capital Constraints Considering Various Salvage Values

Song Man Wu, Felix T.S. Chan, S. H. Chung

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

This paper examines the effects of positive or negative residual values on the supply chain participants’ decisions. The supply chain consists of a cash-strapped manufacturer, a reputable retailer, and a financial institution. Two financing tools are considered to address the manufacturer's financial difficulties. It is found that, firstly, positive and negative residual values affect the optimal order quantity. Secondly, residual values have an impact on the profits of each supply chain member. The threshold value of the retailer's internal asset level is related to the residual value under the condition of single financing equilibrium. Finally, the results are verified by some numerical experiments.

Original languageEnglish
Title of host publicationProceedings - 4th European Rome Conference 2021
EditorsMario Fargnoli, Mara Lombardi, Massimo Tronci, Patrick Dallasega, Matteo Mario Savino, Francesco Costantino, Giulio Di Gravio, Riccardo Patriarca
PublisherIEOM Society
Pages413-420
Number of pages8
ISBN (Print)9781792361272
Publication statusPublished - Aug 2021
Event4th European International Conference on Industrial Engineering and Operations Management, IEOM 2021 - Virtual, Online
Duration: 2 Aug 20215 Aug 2021

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
ISSN (Electronic)2169-8767

Conference

Conference4th European International Conference on Industrial Engineering and Operations Management, IEOM 2021
CityVirtual, Online
Period2/08/215/08/21

Keywords

  • Capital constraints
  • Residual values
  • Supply chain finance
  • Supply chain management

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

Fingerprint

Dive into the research topics of 'A Supply Chain System with Capital Constraints Considering Various Salvage Values'. Together they form a unique fingerprint.

Cite this