Multiparty game research and example analysis in supply chain finance system based on MPDE theory

Liu Xun, Xia Peng, Martin Stuart

Alexandria Engineering Journal · 2020 · 16 citations · 16 references

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Concepts

Abstract

Under the supply chain financial model, financial institutions (such as commercial banks) no longer supply directly to financing companies, but instead face the entire supply chain. Now this model has become a new area to solve the financing difficulties of SMEs. In the supply chain finance system, each node on the chain can pursue its own best interests. The core nodes (commercial banks, small and medium-sized enterprises, third-party logistics companies) can coordinate and monitor their behavior with each other, and can achieve mutual benefit and efficient operation of the supply chain. This paper studies the theory of meshless partial differential equations (MPDE), and uses game theory and information economics theories and methods to establish corresponding multiparty game models. The application of this game model to the members of supply chain finance was explored. Mathematical derivation and example analysis prove that the model is reasonable, and it also provides a way to make the supply chain operate most efficiently and maximize the benefits.

References

16