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| A Study on the Factoring Decisions When Bankruptcy Costs Exist |
| ZHANG Xiaojian,SHEN Houcai,LI Juan,CHEN Yifan |
| Nanjing University, Nanjing, China |
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Abstract In this paper, decision models of nonrecourse factoring and recourse factoring are developed respectively in a supply chain which includes a supplier, a factor and a retailer. Base on the models, the optimal discount rate of factoring is found, and then the factoring choice scenarios in the decentralized decisionmaking mode and the centralized decisionmaking mode are given. Finally, it studies the influence of the retailer’s administrative cost of bankruptcy and the retailer’s working capital on the discount rate of factoring as well as the factoring choice of the supplier and the factor by numerical example and sensitivity analysis.
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Received: 16 February 2012
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2013, Vol. 10 
