Game Analysis on Supply Chain Inventory Financing under Demand Uncertainties

This paper studies the optimal strategy of inventory financing system under the demand uncertainties. The system is composed of a manufacturer, a retailer and a commercial bank. In order to achieve the optimal order, the capital-constrained retailer has to finance from the bank. The bank is devoted to maximizing its profit by setting a reasonable interest rate. As the core enterprise of the supply chain system, the manufacturer tries to enhance the competitiveness of the supply chain system by setting a reasonable wholesale price and buy-back guarantee mechanism. This mechanism helps share market risks with the retailer and the bank. Bi-Stackelberg game model is used to analyse the optimal strategies of the three players in supply chain system, including the retailer's optimal order, the manufacturer's optimal wholesale price and buy-back subsidy, and the bank's optimal financing interest. We also put forward a term "loss recovery rate", and point out its effects on the optimal decision of the retailer and the bank. Results of theoretical analysis are verified by numerical examples.