The Study Of Coordination Mechanism Under Supply Chain Competition

Since 1990s, with the advance of modern science and technology, and with the growing of economic, the competition between enterprises was more and more fierce. In addition, due to the tremendous changes of political, economic, and social environment, the randomicity of whole market demand had greatly increased. Consequently, more and more factories reformed their traditional management modes, outsourcing manufacture of components and parts to others for utilizing external resources. Gradually, a relationship took shape among these factories, which was called"horizontal integration". On this condition, supply chain management emerged, and utilizing its basic principles and methods, great progresses had been achieved in many companies.Supply chain had becoming an important factor for companies intending to win in the future, and commercial competition had been passed on from companies to the supply chains. Several factors control supply chain competitiveness, such as supply chain structure and cost parameters, internal coordination mechanism concerning profit distribution and supply chain stability, production transfer, and coordination of innovation cooperation between supply chains, etc. These factors affect the supply chian competitive position, product output, sales volume and profit, which is also the key study point in this paper. Based on the analysis of the related theories and methods such as supply chain management, motivation theory, contract theory, and variational inequalities theory, the intension and characteristics of supply chain versus supply chain competition system were defined, and supply chain enterprise behavior, physical flow(logistics), funds flow, and information flow were clarified.Through researching features of supply chain competitive mode, supply chain internal equilibrium model respectively based on NASH non-cooperative game, and Stackelberg game were established. It was indicated in this paper that, in the early stage when supply chain forming, NASH non-cooperative game model depicted the period well, while in the supply chain stable age, Stackelberg game model did better. Based on electronical supply chain characteristic, several concepts were defined, such as market chain, operation link and cooperation link, supply chain competition equilibrium conditions were analyzed, and using spatial price equilibrium and variational inequalities theory, supply chain versus supply chain competition variational inequalities model based on B2C was established. On this condition, the right algorithms and solutions existence, uniqueness was studied.Researches were realized on the reasons of supply chain non-coordination, and the validity and necessity of supply chain coordination. Supply chain versus supply chain competition coordination mechanism framework model was developed, and according to which supply chain coordination was divided into internal and external ones.The coordination inside supply chain was again divided into three ones, that was, shipment coordination between supply chain members, coordination based on supply chian disruption management, and profit distribution coordination based on information sharing. For the first one, profit sharing contract and buy back contract were suitable, and through adjusting contract parameter, retailers'optimal order quantity would be just the same with manufacturers'output. For the second, in case product demand increased abruptly, quantity discount contract on again order enable the supply chain seize the market and add profit. Or else if requirement decreasing, buy back & price keeping contract is capable to minimize the loss in profit and reputation. And the last, cooperative game is rational in distributing extra profit produced by supply chain information sharing, and in return ensuring the information sharing goes on smoothly, cutting bullwhip effect and improving the competition.As a new concept, the feasibility of cooperation between supply chains was evaluated in the paper, focusing on the concrete acts of cooperation, including product transfer, cooperation innovation, and outsourcing. Sufficient and necessary conditions of the supply chains cooperation and benefit of cooperation were brought forward by mathematical expressions. While inserting numerical examples, a conclusion was driven from the model that cooperation may come back extra profit to collaborators, pushing them to win.The paper gives a basic supply-chain structure for Harbin A Automobile Industry Group Company Ltd., whose background and sales figures were studied seriously. When comparing that with its competitors involving B and C, a supply chain network model was built up comprising three chains competing with each other in the market. The cost and price parameters of the chains were received by studying their production figures employing statistical approaches, including data fitting, variance analysis, parameters estimation. By sample analysis, competition model and coordination mode among supply chains was proved to be operative and effective in the automobile market.