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

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  • Xu, Song
  • Fang, Lei

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.

Suggested Citation

  • Xu, Song & Fang, Lei, 2020. "Partial credit guarantee and trade credit in an emission-dependent supply chain with capital constraint," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    • Handle: RePEc:eee:transe:v:135:y:2020:i:c:s1366554519302005
    DOI: 10.1016/j.tre.2020.101859
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