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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spelling oai:doaj.org-article:21535f771fb94b7a897bb9df92ae1ba72021-11-11T19:36:32ZInformation Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty10.3390/su1321119172071-1050https://doaj.org/article/21535f771fb94b7a897bb9df92ae1ba72021-10-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/11917https://doaj.org/toc/2071-1050This 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.Junjian WuHenry XuMDPI AGarticlesupply chain managementsupply chain financingsupply uncertaintyinformation leakagecorporate social responsibilitycompetitionEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 11917, p 11917 (2021)
institution DOAJ
collection DOAJ
language EN
topic supply chain management
supply chain financing
supply uncertainty
information leakage
corporate social responsibility
competition
Environmental effects of industries and plants
TD194-195
Renewable energy sources
TJ807-830
Environmental sciences
GE1-350
spellingShingle supply chain management
supply chain financing
supply uncertainty
information leakage
corporate social responsibility
competition
Environmental effects of industries and plants
TD194-195
Renewable energy sources
TJ807-830
Environmental sciences
GE1-350
Junjian Wu
Henry Xu
Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty
description 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.
format article
author Junjian Wu
Henry Xu
author_facet Junjian Wu
Henry Xu
author_sort Junjian Wu
title Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty
title_short Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty
title_full Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty
title_fullStr Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty
title_full_unstemmed Information Leakage and Financing Decisions in a Supply Chain with Corporate Social Responsibility and Supply Uncertainty
title_sort information leakage and financing decisions in a supply chain with corporate social responsibility and supply uncertainty
publisher MDPI AG
publishDate 2021
url https://doaj.org/article/21535f771fb94b7a897bb9df92ae1ba7
work_keys_str_mv AT junjianwu informationleakageandfinancingdecisionsinasupplychainwithcorporatesocialresponsibilityandsupplyuncertainty
AT henryxu informationleakageandfinancingdecisionsinasupplychainwithcorporatesocialresponsibilityandsupplyuncertainty
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