Study on Supplier-Led Supply Chain Finance

This study analyzes a class of supply chain financing system that includes the small and mediumsized manufacturer, the retailer and the raw material supplier which is the core enterprise. Both the manufacturer and the retailer face cash-constraint and cannot produce/order their optimal quantity. Our study is mainly to discuss two financing methods: direct financing and supply chain finance financing, to analyze the two methods of supply chain profit distribution status and then to derive the model of mechanism about the distribution of profits. According to the profit function, it indicates that choosing the supply chain finance financing is more beneficial for the supply chain.