The Decisions of Banks Based on the Supply Chain Finance

According to the demand model, a decision-making model for supply chain including banks is set up. A model under decentralized decision-making and buy-back contract is constructed. After the model analysis，the expected return of each supply chain participant is obtained. Through the data analysis, the impact of the banks on the supply chain is showed. From the perspective of supply chain finance, retailers order quantity, the manufacturer price and the bank rate are analyzed. Then the Stackelberg game theory is used, in which banks are the leader, manufacturers and retailers are the followers. Finally, one balanced optimal solution is given. A conclusion is drawn that in a smaller market, the three functions have same trend. However, in a larger market, bank rate has no impact on the retailer order quantity and the earnings of the bank reach a fixed value gradually.