{"title":"Financing options for logistics firms considering product quality loss","authors":"Gongbing Bi, Yue Wu, Hang Xu","doi":"10.1108/jm2-12-2023-0296","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>This paper aims to investigate the impact of quality loss in transit on e-commerce supply chain pricing, production and financing decisions.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>The authors consider a Stackelberg game model with a supplier, logistics firm and e-commerce platform. The logistics firm is capital-constrained and obtains funding from the e-commerce platform by debt financing or equity financing. Through backward induction, this paper first solves the equilibrium results under the two financing schemes and then reveals the financing preferences of all parties.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The results demonstrate that equity financing reduces financing costs and promotes production significantly. However, it may also lead to overproduction, particularly in markets with poor profitability and high cost factors. When the percentage of product quality loss is large, equity financing is preferable. With the increasing of transportation level, the benefits of debt finance are steadily growing. In addition, equity financing is the Pareto dominant scheme for all firms under certain circumstances. The extensions consider hybrid financing and another quality loss type.</p><!--/ Abstract__block -->\n<h3>Practical implications</h3>\n<p>The paper derives the equilibrium solutions and financing preferences, then specifies the threshold for applying financing schemes. Provide guidance for logistics firms’ finance model innovation and core enterprise involvement in the logistics industry.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>The paper investigates how logistics firms’ financing strategies are impacted by product quality loss.</p><!--/ Abstract__block -->","PeriodicalId":16349,"journal":{"name":"Journal of Modelling in Management","volume":null,"pages":null},"PeriodicalIF":1.8000,"publicationDate":"2024-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Modelling in Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jm2-12-2023-0296","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
This paper aims to investigate the impact of quality loss in transit on e-commerce supply chain pricing, production and financing decisions.
Design/methodology/approach
The authors consider a Stackelberg game model with a supplier, logistics firm and e-commerce platform. The logistics firm is capital-constrained and obtains funding from the e-commerce platform by debt financing or equity financing. Through backward induction, this paper first solves the equilibrium results under the two financing schemes and then reveals the financing preferences of all parties.
Findings
The results demonstrate that equity financing reduces financing costs and promotes production significantly. However, it may also lead to overproduction, particularly in markets with poor profitability and high cost factors. When the percentage of product quality loss is large, equity financing is preferable. With the increasing of transportation level, the benefits of debt finance are steadily growing. In addition, equity financing is the Pareto dominant scheme for all firms under certain circumstances. The extensions consider hybrid financing and another quality loss type.
Practical implications
The paper derives the equilibrium solutions and financing preferences, then specifies the threshold for applying financing schemes. Provide guidance for logistics firms’ finance model innovation and core enterprise involvement in the logistics industry.
Originality/value
The paper investigates how logistics firms’ financing strategies are impacted by product quality loss.
期刊介绍：
Journal of Modelling in Management (JM2) provides a forum for academics and researchers with a strong interest in business and management modelling. The journal analyses the conceptual antecedents and theoretical underpinnings leading to research modelling processes which derive useful consequences in terms of management science, business and management implementation and applications. JM2 is focused on the utilization of management data, which is amenable to research modelling processes, and welcomes academic papers that not only encompass the whole research process (from conceptualization to managerial implications) but also make explicit the individual links between ''antecedents and modelling'' (how to tackle certain problems) and ''modelling and consequences'' (how to apply the models and draw appropriate conclusions). The journal is particularly interested in innovative methodological and statistical modelling processes and those models that result in clear and justified managerial decisions. JM2 specifically promotes and supports research writing, that engages in an academically rigorous manner, in areas related to research modelling such as: A priori theorizing conceptual models, Artificial intelligence, machine learning, Association rule mining, clustering, feature selection, Business analytics: Descriptive, Predictive, and Prescriptive Analytics, Causal analytics: structural equation modeling, partial least squares modeling, Computable general equilibrium models, Computer-based models, Data mining, data analytics with big data, Decision support systems and business intelligence, Econometric models, Fuzzy logic modeling, Generalized linear models, Multi-attribute decision-making models, Non-linear models, Optimization, Simulation models, Statistical decision models, Statistical inference making and probabilistic modeling, Text mining, web mining, and visual analytics, Uncertainty-based reasoning models.
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