The Reputation Incentive Mechanism of the Credit Risk in the Supply Chain under Permissible Delay in Payme ts

This paper discusses the reputation incentive mechanism in the supply chain from the supplier's point of view. in three aspects, In order to explain the credit risk aroused by the time difference between the payment and the delivery after the permissible delay in payments were applied in the supply chain, it, from the angle of suppliers, discusses the following three situations: the retailer paid within the credit period, the retailer paid beyond the credit period, but the supplier could still bear, the retailer paid beyond the degree that the supplier could bear. The result shows that the retailer could be inspired efficiently by increasing the two factors, that is, the reputation level that the supplier thought the retail belonged to and the discount factor.