Optimal Ordering Policies for Retailer under Supply Chain Finance

Supply chain finance (SCF) is a series of products and services that are provided by the financial institutions in support of the physical and informational flows of a supply chain. It is important to analyze the entities decision quantitatively based on the context of SCF for both the supplier and retailer. The paper combines the concept of SCF with the specific processes of the Confirming Storage Financing Model (CSFM) and presents the best optimal order quantity based on modeling. Through sensitivity analysis, this paper demonstrates the retailer's minimum risk under various considerations as well as the value that affects the order quantity. Finally, a numerical example is given to support the decision of managers in real circumstances.