Institute of Transportation, MOTC

       As the growing of globalization, the competition between each supply chain becomes fiercer. However, because of the economic variation and high bankruptcy risk, the availability of credit financing is limited. Supply chain finance (SCF) is proposed to ease the situation. SCF includes solutions to make the cash flow in the supply chain efficiently used. This research aims to increase the opportunities for obtaining bank loan to gain sufficient cash flow within entire supply chain and approach higher profit individually. We propose a SCF scheme by joint bank financing with credit guarantee (JBF). To reveal the advantages of JBF, we build mathematical models of bank financing separately (BFS) and JBF, respectively. The results show that under JBF, the supply chain is able to approach higher order quantity and thus the profit of each member in the supply chain increases. We further present numerical analysis of each member's profit under BFS and JBF. In addition, we demonstrate the bankruptcy risk of each order quantity, the sensitivity analysis of demand market risk and the analysis of economic of scale.