Research on decision analysis with CVaR for supply chain finance based on partial credit guarantee and blockchain technology

Abstract

AbstractConsidering the influence of decision maker's risk preference degree on decision making, this paper employs CVaR risk measure criterion to facilitate decision making. The optimal decision making of supply chain finance under partial credit guarantee and blockchain technology empowerment is investigated. In addition, the CVaR decision models for supply chain finance under two scenarios of partial credit guarantee and blockchain technology empowerment are constructed. The inverse solving is conducted with the help of the Stackelberg model to find out the optimal ordering quantity, wholesale price, and interest rate. The influencing factors of decision making are investigated. This study shows that, within a certain risk‐averse range, the ordering quantity of retailers under the partial credit guarantee model is larger than that under the blockchain technology‐enabled model. In contrast, the conditional risk value of suppliers under the partial credit guarantee model is much smaller than that under the blockchain technology‐enabled model. In conclusion, the blockchain technology is beneficial to reduce supply chain finance risks.