Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty

This paper investigates information leakage and financing simultaneously in a supply chain (SC) consisting of one capital-constrained supplier and two retailers with private demand-forecast signals. The supplier invests in corporate social responsibility (CSR) events and displays supply uncertainty....

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Autores principales: Junjian Wu, Henry Xu
Formato: article
Lenguaje:EN
Publicado: MDPI AG 2021
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Acceso en línea:https://doaj.org/article/21535f771fb94b7a897bb9df92ae1ba7
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Sumario:This paper investigates information leakage and financing simultaneously in a supply chain (SC) consisting of one capital-constrained supplier and two retailers with private demand-forecast signals. The supplier invests in corporate social responsibility (CSR) events and displays supply uncertainty. The supplier decides whether to leak information (<i>L</i>) or not (<i>N</i>). Additionally, the supplier has two financing strategies: bank credit financing (<i>B</i>) and trade credit financing (<i>T</i>). Thus, by combining the supplier’s information leakage and financing decisions, we formulated four possible strategies (i.e., <i>NB</i>, <i>NT</i>, <i>LB</i>, <i>LT</i>) and built a game analysis model to address the interaction of information leakage and financing decisions. We first provide the SC members’ optimal operational decisions (including the order quantity, the wholesale price and CSR effort level) under four strategies. Subsequently, we compare the profits of the suppliers and retailers under four strategies by combining analytical and numerical analysis. Several interesting results were found: (1) the supplier’s optimal wholesale price, CSR effort level, and profit under information leakage were higher than those under no information leakage; (2) the supplier’s financing decisions are dependent on the loan interest rate as low supply uncertainty and low supply correlation motivate the supplier to prefer choosing trade credit financing; and (3) finally, several interesting insights in managing SCs are provided.