Partial credit guarantee and trade credit in an emission-dependent supply chain with capital constraint

Song Xu and Lei Fang

Transportation Research Part E: Logistics and Transportation Review, 2020, vol. 135, issue C

Abstract: 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.

Keywords: Emission-dependent supply chain; Capital constraint; Partial credit guarantee; Trade credit; Emission reduction investment (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (41)

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DOI: 10.1016/j.tre.2020.101859

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