Selecting the supply chain financing mode under price-sensitive demand: Confirmed warehouse financing vs. trade credit

In a product market with price-sensitive demand, we examine supply chain consisting of one manufacturer and capital-constrained retailer. The retailer may purchase by borrowing securing confirmed warehouse financing (CWF) from competitive bank or the manufacturer's trade credit (TCF), provided that it is also to latter's benefit extend TCF. We obtain optimal pricing decision in two modes under wholesale price contract coordinates given wider range prices CWF. find CWF more suitable for customer segment which unit retail low demand stable, so can be monetized quickly; TCF high has elasticity hence long-term investment. repurchase an important factor affecting participants' selection