Title :
Decision models of factoring in a supply chain
Author :
Xiaojian, Zhang ; Houcai, Shen
Author_Institution :
Dept. of Manage. Sci. & Eng., Nanjing Univ., Nanjing, China
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;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2011 8th International Conference on
Conference_Location :
Tianjin
Print_ISBN :
978-1-61284-310-0
DOI :
10.1109/ICSSSM.2011.5959516
