Wholesale-price Contract Model of Supply Chain with Credit Sale

Abstract

Abstract-In the fierce market competition, credit as a tactic commonly found in the supply chain. It can stimulate the market demand, but it also brings the opportunity cost of funds. Using supply chain contract model of wholesale contracts, researching the contract parameters in the condition with only the suppliers to provide retailers with credit and only the retailers provide the account sales to the customers. Found to meet certain conditions, the two situations will improve overall supply chain performance. The first case is relying on funds from low-income to high-yielding nodes mobile nodes to upgrade performance. The second case is relying on credit to stimulate demand, and opportunity cost control in a certain range and performance improvement was taken.