Ni-na Yan
Business School, Central University of Finance and Economics, 10081, Beijing, China
Bao-wen Sun
Business School, Central University of Finance and Economics, 10081, Beijing, China
ABSTRACT
In this study, we design a Capital-constrained Supply Chain (CCSC) system with a manufacturer and a capital-constrained retailer who can obtain short-term finance from the commercial bank through inventory financing according to the value of the pledged warehouse receipt. Using the system dynamics methodology, we model the stock and flow diagrams and simulate the system characteristics for non-financing scheme and inventory financing scheme, respectively. Through simulation experiments, we make a comparative analysis of the operational and financial decisions in the CCSC system with and without the financing scheme. Finally, combined with various loan-to-value ratios and capital-constraint degrees, we conduct sensitivity analyses to discuss the impact of different financing conditions on supply chain operations. The rationality and effectiveness of inventory financing scheme is validated. It concluded that the all-win effect of the inventory financing could be realized in the CCSC system.
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How to cite this article
Ni-na Yan and Bao-wen Sun, 2013. System Dynamics Modeling and Simulation for Capital-constrained Supply Chain Based on Inventory Financing. Information Technology Journal, 12: 8384-8390.
DOI: 10.3923/itj.2013.8384.8390
URL: https://scialert.net/abstract/?doi=itj.2013.8384.8390
DOI: 10.3923/itj.2013.8384.8390
URL: https://scialert.net/abstract/?doi=itj.2013.8384.8390
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