HighlightsWe consider a supplier-retailer channel.Providing trade credit to customers incurs default risk.Credit period, big-data analytics effort, and order size are decisions.Supplier or retailer can use big-data analytics to mitigate default risk.Identify the party that should implement big-data analytics in the supply chain.

    AbstractThis paper considers a supplier–retailer channel in which providing trade credit to customers incurs default risk. Big-data analytics (BD-A) could be used to mitigate default risk. The aim is to identify the party that should implement BD-A in the supply chain. Our results indicate that when the retailer (supplier) is dominant in determining the credit period, the retailer (supplier) prefers to implement BD-A unilaterally if the optimal BD-A effort is higher than a threshold. The credit period, quantities ordered, and BD-A effort increase when BD-A effort cost is shared.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Managing default risk under trade credit: Who should implement Big-Data analytics in supply chains?


    Contributors:


    Publication date :

    2017-08-26


    Size :

    18 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English






    Managing global supply chains

    Basu, Ron / Wright, J. Nevan | TIBKAT | 2017


    System Dynamics -Based Operational Mode of Trade Credit System for Enterprise in Supply Chains

    Xu, Xiao-Bin / Li, Chuan-Zhao / Xu, Jin-Xiu et al. | ASCE | 2007


    System Dynamics-Based Operational Mode of Trade Credit System for Enterprise in Supply Chains

    Xu, X.-B. / Li, C.-Z. / Xu, J.-X. et al. | British Library Conference Proceedings | 2007