Competition among supply chains: the choice of financing strategy

This article aims at studying the incentive for factoring in competing supply chains to examine the influences of the factoring decision in one supply chain on other chains. We consider multiple competing supply chains, each consisting of a manufacturer and a retailer. We firstly examine the issue under the special case of two supply chains, and then extend the model to multiple supply chains. The extended model is actually a bi-level non-cooperative game with multiple leaders and multiple followers, which we formulate as an Equilibrium Problem with Equilibrium Constraints. Numerical examples are presented to illustrate the rationality of the proposed model for the supply chains competition with financing choices.