Research on Financial Supply Chain from View of Stability

Abstract

The former research work on material and financial supply chain management has mainly adopted marginal analysis and EOQ model, which are based on the traditional idea of self interest maximization or “Efficiencism”. However, this idea often drives those strong enterprises in a supply chain to occupy their weaker partners’ funds by corporation finance policy; thus results in the break of the monetary flows along the chain. This paper discusses the interest unbalance within such a small system and its negative effects; then proposes a way to resolve it from view of alliance and cooperation. A simple model of stable money flow along supply chain is given.
Key words: Financial Supply Chain (FSC); “Efficiencism”; Stability of money flows