The impact of insufficient cash flow on payment term and supply chain contracts

Author(s):  
Jiannan Shen ◽  
Jia Qian
2019 ◽  
Vol 65 (8) ◽  
pp. 3928-3947 ◽  
Author(s):  
Panos Kouvelis ◽  
Xiaole Wu ◽  
Yixuan Xiao

We study hedging cash-flow risks in a supply chain where firms invest internal funds to improve production efficiencies. We offer a decomposition framework to capture the cost-reduction and flexibility effect of hedging. It allows us to understand how a firm’s hedging choice depends on its supply chain partner’s decision, and how such interaction is affected by supply chain characteristics such as market size, cash-flow volatility, and correlation. When firms’ cash flows are independent of each other, they are more likely to hedge with a larger market size. When cash flows are correlated, the impact of market size and volatility on firms’ hedging decisions presents multiple patterns, contingent on whether their risks amplify or offset each other. This paper was accepted by Gustavo Manso, finance.


2020 ◽  
Vol 271 ◽  
pp. 122274
Author(s):  
Hannan Amoozad Mahdiraji ◽  
Khalid Hafeez ◽  
Ahmad Jafarnejad ◽  
Ali Rezayar

2022 ◽  
Vol 2022 ◽  
pp. 1-21
Author(s):  
Xingji Chen ◽  
Jing Zeng ◽  
Xigang Yuan

While considering the competition effect and market share, this study discusses how the cash flow bullwhip effect (CFBE) is impacted in two-product and two-parallel supply chain systems by comparing the situation that it has one kind of product in two-level supply chain (SC). Specifically, the study aimed to examine two-product and two-parallel SC systems that include two suppliers and two retailers. Assuming that the demand function is a linear relationship of price self-sensitivity coefficient and price cross-sensitivity coefficient, which is an AR(1) process, two retailers share the demand. After that, the quantitative equation of the CFBE was deduced from two-product and two-parallel SC systems. Finally, we get the condition that the competition effect and the market share increase or decrease the CFBE, which was in contrast to the situation without the competition effect and the market share. The paper suggested that the manager can cooperate with their partner if two products are substitutable. On the other hand, the firm should improve the forecasting accuracy of the customer’s demand and improve the service quality so that it can increase the market share and reduce the CFBE in two-parallel SC systems.


The university is considered one of the engines of growth in a local economy or its market area, since its direct contributions consist of 1) employment of faculty and staff, 2) services to students, and supply chain links vendors, all of which define the University’s Market area. Indirect contributions consist of those agents associated with the university in terms of community and civic events. Each of these activities represent economic benefits to their host communities and can be classified as the economic impact a university has on its local economy and whose spatial market area includes each of the above agents. In addition are the critical links to the University, which can be considered part of its Demand and Supply chain. This paper contributes to the field of Public/Private Impact Analysis, which is used to substantiate the social and economic benefits of cooperating for economic resources. We use Census data on Output of Goods and Services, Labor Income on Salaries, Wages and Benefits, Indirect State and Local Taxes, Property Tax Revenue, Population, and Inter-Industry to measure economic impact (Implan, 2016).


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