Supply Chain Coordination Considering the Interest Expense Sharing

Supply chain coordination is directly related to supply chain performance. In this paper, based on the traditional Newsvendor Model, a supply chain coordination model based on the interest expense sharing is established through the introduction of third-party financial institutions. This model can effectively reduce the impact of the enterprises which have strong negotiating skills on the supply chain. This paper also considers about supplier's fairness concerns, and verifies the results showed that the model is fair. The main conclusion of this paper is that through regulation of the supply chain enterprise interest and assessment of income transfer, financial institutions can make the supply chain coordinate and maintain a relatively fair.