Research on optimal strategy of engineering materials procurement based on supply chain financing

Under the general contracting pattern, the construction enterprises obtain the right of procurement, but they face both financing constraints and risks of material price volatility at the same time. Supply chain financing provides a reliable way to solve this problem. In this paper, we first design the supply chain financing procurement pattern for the construction enterprises based on Finance Transportation and Warehouse (FTW). We then develop a Stackelberg game model between the construction enterprises and the third party logistics enterprises under uncertainties. Uncertainties such as price, demand and financing constraints are all considered in the proposed model. After that, we discuss the construction enterprises´ optimal strategy under the prerequisite that the construction enterprises must repay the loan. The optimal quantity of the purchased and pledged engineering materials are all solved.