Partial credit guarantee and trade credit in an emission-dependent supply chain with capital constraint
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This study investigates a supply chain financing (SCF) system with one supplier and one emission-dependent and capital-constrained manufacturer. Unlike the traditional SCF, the manufacturer borrows two loans to execute the ordering decision and make a low-carbon investment, respectively. We derive the equilibrium strategies of the supply chain members under partial credit guarantee (PCG) and a combination of trade credit and PCG and compare with that under a benchmark (well-funded manufacturer). There exists a unique coefficient of credit guarantee for the supplier to decide whether to provide a trade credit. Numerical studies and extension are discussed to obtain more managerial implications.
Subfields: Accounting, Management Information Systems, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/7bf83e28fa8397d800d23c7138dd5c42c981de84