Research on Retailer's Financial and Operation Decisions Based on Strategic Customer

Abstract

Abstract-This paper studies retailer's decision and financial institution's decision based on the strategic customer when retailer accepts financial service from financial institutions. Research shows that financing rate increases with the wholesale price and the average rate of return on investment increasing and decreases with the retailer's own funds increasing, and retailer's ordering quantity with finance service is higher than that of without finance service, and retailer and financial institution both get more the expected profit, and strategic customers get more benefits. Finally, a numerical example is validated.