Third-Party Retailer’s Lot-Sizing Policy Under Conditions of Trade Credit, Uncertain Demand and Asymmetric Initial Budget Information

Large retail platform has begun to provide trade credit the capital-constrained and start-up third party retailer (3PR). Most of 3PRs face uncertain demands with few historical data, which makes it difficult for evaluate rationality 3PR’s lot-sizing decision design contracts. In addition, initial budget is unknown platform, further increases risk credit. There- fore, this paper considers a two-echelon supply chain consisting retail- 3PR, investigates contract based on demand asymmetric information. We find that a) empirical uncertainty distribution an effective tool modeling data. b) The 3PR will place irrational purchasing order regardless market condition when does not interfere mak- ing. 3) overstate its get more loan interferes making.