TITLE:
Risk Migration In Supply Chain Inventory Financing Service
AUTHORS:
Zheng Qin, Xiaochao Ding
KEYWORDS:
Supply Chain, Inventory Financing, Value of Risk
JOURNAL NAME:
Journal of Service Science and Management,
Vol.4 No.2,
June
16,
2011
ABSTRACT: Inventory financing affects the risks of both for banks and supply chain companies. Traditionally, supply chain research focus more on material flow than financial. We construct a supply chain financing risk-information migration model (RMM). In this model, we discussed the preconditions to adopt inventory financing when the enterprises are facing cash constraints. And we simulated the whole operate of supply chain and bank behavior with Matlab. The simulation result shows if loan conditions are satisfied, the total risk value is reduced. Risk migration happens in the financing process. In this process, information-risk proportions are more reasonable.