120 / 2024-04-20 23:22:40

Two-Stage Supplier Financing under Liquidity Shocks

supply chain finance,operations-finance interface,purchase order finance,factoring,game theory

Utilizing game theory, we examine how the capital-constraint supplier optimizes profit through a two-stage supply chain finance, including purchase order financing and factoring, when confronting potential external shocks. We analyze suppliers' strategic decisions on responding to or disregarding shocks in two stages and their impact on overall supply chain profitability.