Financing and ordering decisions in a risk‐averse dual‐channel supply chain: Interactive impacts of revenue sharing rate and dividend proportion

Abstract

AbstractThe paper studies a dual‐channel supply chain in which the capital‐constrained retailer operating the reselling channel is risk‐averse, whereas both the supplier and the platform operating the direct retail channel exhibit risk‐neutral. The traditional retailer chooses supplier financing (SF), platform investment (PI), or non‐financing (NF) to meet uncertain demand. Examining three scenarios using CVaR, we find financing equilibrium determined by interactive impacts of dividend proportion and revenue sharing rate. Adjusting the latter achieves Pareto improvement among supply chain members, explaining why platforms invest in traditional retailers. Extending the model introduces a portfolio financing approach, combining SF and PI.