Decision models of factoring in a supply chain

Author

Xiaojian, Zhang ; Houcai, Shen

Author_Institution

Dept. of Manage. Sci. & Eng., Nanjing Univ., Nanjing, China

fYear

2011

fDate

25-27 June 2011

Firstpage

1

Lastpage

6

Abstract

Factoring plays a crucial role in solving the financing problems, which are common among small and medium enterprises (SMEs). In this paper, we develop decision models by considering non-recourse factoring and recourse factoring respectively in a supply chain which includes a bank and a seller. Then we find the optimal discount rate of factoring in two scenarios. Finally, we study the influence of the seller´s equity fund and the probability of bad debts on the discount rate of factoring by numerical example and sensitivity analysis.

Keywords

decision theory; financial management; organisational aspects; probability; small-to-medium enterprises; supply chain management; SME; bad debts; bank; decision models; financing problems; nonrecourse factoring; optimal discount rate; probability; seller equity fund; sensitivity analysis; small and medium enterprises; supply chain; Biological system modeling; Decision making; Force; Sensitivity analysis; Supply chains; factoring; financing; recourse; suppfy chain;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Systems and Service Management (ICSSSM), 2011 8th International Conference on

Conference_Location

Tianjin

ISSN

2161-1890

Print_ISBN

978-1-61284-310-0

Type

conf

DOI

10.1109/ICSSSM.2011.5959516

Filename

5959516