Abstract:

When facing a shortage of funds， firms cannot operate normally and have to formulate their management strategies again， thus reducing the efficiency of supply chains. Thus， most companies raise capital through external financing schemes， which incurs high debt or default risk. To enhance repayment capacity， some capital-constrained firms often employ bundling selling， bundling complementary products into packages and selling these to customers. Despite reducing uncertainty in demand and process， this bundling selling method might reduce the product prices and sales revenues as well， thus altering the firms’ strategic choices.To study the impacts of selling strategy within a supply chain under external financing modes， it focuses on a supply chain with complementary products and a decision model is built for a manufacturer and a supplier in presence of bank financing. Specifically， the manufacturer first determines the sales model， and subsequently the supply chain members respectively set component or product prices. Then， the manufacturer produces and sells the products， thereby generating sales. In this model， the optimal prices of complementary products under the independent and bundling selling situations are explored， and further the sales strategies are examined through comparative analysis.Through the model analysis， the results are summarized as follows. First， with an increase in market size， the link between the bundling sales price and the sensitivity to discounted price changes from positive to negative. Second， affected by market demand， the manufacturer is likely to choose bundling selling when the product complementarity is low， high， or moderate. Third， a stronger bargaining power does not necessarily incentivize the supplier to increase the component price when the supply chain participants negotiate the price. It focuses on the impact of financing programs on the selling strategy of a supply chain with complementary products， which enriches the studies on marketing and operations management， and also provides managerial insights for companies to know when and how to utilize bundling sales based on product and financial markets， thus improving the effectiveness of their decisions. In the future， it can be extended by considering the impact of other financing modes and loss attitudes.

Key words: capital constraints, supply chain, complementary goods, operation decision, bundling selling