On delineating supply chain cash flow under collectionrisk |
| |
Authors: | Chih-Yang Tsai |
| |
Institution: | 1. School of Mathematics, Statistics and Actuarial Science, University of Kent, Canterbury, UK;2. School of Finance and Statistics, Hunan University, Changsha 410079, China;3. Adam Smith Business School, University of Glasgow, Glasgow, UK |
| |
Abstract: | The credit terms for accounts receivable (AR) offered by sellers to buyers not only create a time lag between supply chain physical flow and cash flow, but also increase the collection risk contributed by late collection and default. Previous studies describing the relationship between the two major supply chain flows did not consider the collection risk, which poses a serious challenge to companies with limited cash resources when seeking growth opportunities in sales. This study first delineates the relationship between the two flows during a growth period without imposing any constraints. A stochastic optimization model is then developed to observe the managerial implications of cash flow risk under tight cash constraints. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|