Financial Assistance in a Capital-Constrained Cellphone Supply Chain

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

In the cellphone industry, some manufacturers may face the problem of insufficient funds in the production process and some retailers can return unsold phones to the manufacturer at a repurchase price. Hence, in this article, we aim to investigate the supply chain operation and financing strategy under a buyback policy in the product lifecycle management of the cellphone. In this supply chain, the manufacturer can obtain money from two sources, one is the downstream retailer’s advance payments, the other is the loans from a third-party financial institution. Through modeling, the optimal strategy of the supply chain is determined, and the influence of the deviation between repurchase price and residual value on the optimal strategy of the supply chain is analyzed. The results show that the deviation between the repurchase price and the residual value of the unsold cellphone has an impact on the manufacturer’s decisions, and the repurchase price has an impact on the financing equilibrium. Finally, the numerical analysis verifies the results.

Original languageEnglish
Title of host publicationProduct Lifecycle Management. Green and Blue Technologies to Support Smart and Sustainable Organizations
EditorsOsiris Canciglieri Junior, Frédéric Noël, Louis Rivest, Abdelaziz Bouras
PublisherSpringer Science and Business Media Deutschland GmbH
Pages74-83
Number of pages10
ISBN (Print)9783030943349
DOIs
Publication statusPublished - 8 Feb 2022
Event18th IFIP WG 5.1 International Conference on Product Lifecycle Management, PLM 2021 - Virtual, Online
Duration: 11 Jul 202114 Jul 2021

Publication series

NameIFIP Advances in Information and Communication Technology
Volume639 IFIP
ISSN (Print)1868-4238
ISSN (Electronic)1868-422X

Conference

Conference18th IFIP WG 5.1 International Conference on Product Lifecycle Management, PLM 2021
CityVirtual, Online
Period11/07/2114/07/21

Keywords

  • Buyback policy
  • Capital constraints
  • Residual value
  • Supply chain financing
  • Supply Chain Management

ASJC Scopus subject areas

  • Information Systems
  • Computer Networks and Communications
  • Information Systems and Management

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