Retail And Financial Department Structure Design for Retailers: A Supply Chain Finance Perspective

Abstract

In order to study the organizational structure design of the retailer’s financial and retail sectors under the conditions of manufacturer’s financial constraints and output uncertainty, this article is based on a two-party dynamic that includes manufacturers with uncertain output and large retailers that can provide financial support. Through the game model, the optimal contract design of the retailer under different organizational structures was obtained by solving the corresponding equilibrium results, and the optimal organizational structure design of the retailer was obtained by analyzing the corresponding equilibrium results. Departmental capital costs are decreasing monotonically. The result of analyzing the manufacturer's output uncertainty shows that the most favorable complete output probability for the retailer is lower than the manufacturer's optimal complete output probability. Extending the model to consider the existence of external financial institutions, the manufacturer's financing model selection plan was obtained. This research provides theoretical support and reference for the financing and operation decisions of retailers, manufacturers, and external financial institutions in the context of supply chain finance.