Financial and operation decisions with budget-constrained and risk appetite in supply chain

Based on the Mean-variance theory, this paper studies of the financial and operating decision with a-risk-neutral-type supplier and a-risk-appetite type retailer. The results show that retailer´s return rate more than market capital average rate of return on investment is the reason of financial service existing and the retailer´s optimal order quantity with credit behavior fluctuates with risk appetite changing is greater than that without financial service. Finally, a numerical example is validated.