A Research about the Impact of Cash Flow Service Provider on the Supply Chain Capital Flow-Based on the Input-Output Model

Abstract

In order to explore the ripple effect on the upstream and downstream enterprises that caused by enterprise’s change in cash flow brought by cash flow service provider, we structure the input-output cash flow table between supply chain node enterprises based a single-cycle newsvendor model and the systematic character of supply chain, and use the Input-Output Model and Price Change Model to study the effect caused by two cash flow services (compressing capital recovery period and compressing procurement payment service) of cash flow service provider on the financing enterprise itself and its upstream and downstream. It is validated that the cash flow service provider can not only solve the funds shortage problem of financing enterprises, but also has a significant impact on the cash flow changes of upstream and downstream enterprises.