Joint operation and financing decisions of supply chain under trade credit mode.

In this paper, we develop models to determine operational and financial decisions of the supply chain under the assumption that the retailer faces budget constraint and the manufacturer offers trade credit to help him. We first assume that the retailer is risk neutral, and derive his optimal ordering and financial decisions. Then, we study the downside risk associated with the retailer and analyze the effect of the risk on the retailer and manufacturer's operational and financial decisions, and provide some numerical examples. [ABSTRACT FROM PUBLISHER]