EQUILIBRIUM ANALYSIS FOR THE NEWSVENDOR PROBLEM WITH ORDER LEAD TIME AND RISK CONTROL CONSIDERATION

摘要

Providing the efficient financing channel between capital-constraint small-medium enterprise (SME) and finance institute is one of the important aspects of the supply chain financing. Risk control of financing for SME is crucial for finance institute. Meanwhile, order-lead time also plays important role in SCM. Based on the considerations, the paper extends the optimal order quantity and order time of traditional newsvendor model with comprehensive capital constraint and risk control and time-sensitive factors. Further, the paper analyzes the equilibrium and the best response function of the loan rate and the owned capital via numeric example. It proves the intuitive fact that higher salvage value or lower holding cost leads to less loan rate and less owned capital. Last, the paper points out the mathematical- analysis direction for future research.