Mixed financing modes for capital-constrained supply chain with risk-averse members

This paper considers a two-echelon supply chain consisting of supplier and capital-constrained retailer. Both the retailer are risk-averse decision makers. The may adopt two mixed financing modes: (1) bank credit equity (BEF) (2) trade (TEF). Using mean-variance framework, we analyze members ordering decisions in cases: symmetric asymmetric risk aversion threshold information. In case information, characterize conditions under which both prefer BEF or TEF. demonstrate that has an incentive to pretend be less averse. To prevent this distortion behavior, design minimum quantity contract for supplier. Finally, extend our model loan-trade credit-equity mode (BTEF) can borrow from seeks financial support investors. numerical simulations results.