Financial and operation decisions with budget-constrained and risk appetite in supply chain

Based on the Mean-variance theory, this paper studies of the financial and operating decision with a-risk-neutral-type supplier and a-risk-appetite type retailer. The results show that retailer's return rate more than market capital average rate of return on investment is the reason of financial service existing and the retailer's optimal order quantity with credit behavior fluctuates with risk appetite changing is greater than that without financial service. Finally, a numerical example is validated.