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Epstein Institute Seminar
Mon, Nov 17, 2014 @ 03:30 PM - 04:30 PM
Daniel J. Epstein Department of Industrial and Systems Engineering
Conferences, Lectures, & Seminars
Speaker: Dr. Boray Huang, Assistant Professor, Department of Industrial and Systems Engineering, National University of Singapore
Talk Title: "Support SME Suppliers Through Buyer-Backed Purchase Order Financing"
Abstract: Supporting small and medium enterprises (SMEs) to access finance has received rapidly-rising attention in recent years. In some countries, large buyers in supply chains are considering credit guarantee schemes (CGS) through which the credit coverage can be extended to assist their SME suppliers. While such sup-port is beneficial to the suppliers, an issue arises regarding the motivation of the large buyers to join and support the SME suppliers. In practice, SMEs are often attractive but riskier sources of supply. Supporting SME suppliers through the financial guarantee may bring even more risk concern to buyers. To study the buyersâ sourcing and guarantee strategy, we analyze a simplified model where a core enterprise procures components from only two sources: an SME supplier with a lower price and the spot market with a higher price. A novel Buyer-Backed Purchase Order Financing (BPOF) scheme is studied in supporting the supplierâs financing. We analyze the effect of the market interest and identify the properties of the buyerâs optimal joint sourcing and credit-guarantee decisions. Through numerical experiments, BPOF is shown to significantly improve the core enterpriseâs profitability.
MONDAY, NOVEMBER 17, 2014
ANDRUS GERONTOLOGY CENTER (GER) ROOM 206
3:30 - 4:30 PM
Biography: Dr. Boray Huang is an Assistant Professor in Department of Industrial and Systems Engineering at National University of Singapore. He received his Ph.D. degree in Industrial Engineering and Management Sciences from Northwestern University. His current research interest is the interface between finance and operations in supply chains and social enterprises. He has published articles in Operations Research, IEEE Transactions on Automatic Control, Operations Research Letters and others. He is a member of INFORMS and IIE.
Host: Daniel J. Epstein Department of Industrial and Systems Engineering
More Information: Seminar-Boray Huang.docx
Location: Ethel Percy Andrus Gerontology Center (GER) - 206
Audiences: Everyone Is Invited
Contact: Georgia Lum
