Study On The Pricing Incentive Model And The Stocking Incentive Model Of Information Sharing In The Supply Chain

Supply chain management (SCM) refers to three aspects: material flow, capital flow and information flow. The information flow management is the core controller of SCM and the material flow management and capital flow management run around the information flow management. Rapid and smooth information flow among supply chain enterprises, i.e., fully information sharing, can efficiently conduct the operation of material flow and capital flow and then improve the overall benefit of the supply chain. So, careful study on the information sharing in supply chains is necessary to improve the SCM efficiency in our country.This paper firstly introduces some basic conception of SCM and points out the importance of information flow. With summarizing the literature about the study on information flow, this paper states the value of information sharing. And then this paper gives the kinds of sharable information in supply chains and presents the role of these information in SCM.This paper analyzes the obstacles in the process of information sharing in supply chains and applies the principal-agent theory to design the incentive mechanism for information sharing in supply chain. General description and model are presented, and then two incentive models are studied in detail: the pricing model and the stocking model.The pricing model presents a pricing strategy of the upper enterprises in supply chains, which provides the lower enterprises with information sharing cheaper goods. According to the principle of maximizing the profit, the model studies the optimal pricing method for the upper enterprises to achieve maximum profit for all enterprises in the supply chain.The stocking model designs a three-phase contract between the manufacturer and the retailer, which can prompt the retailer to share his demand information with the manufacturer. In the stocking contract, the retailer forecasts the demand information and then updates it, so the manufacturer can get more accurate demand information of the market and takes on part of the risk of demand uncertainty. Profits sharing and two-win situation can be achieved.Finally, this paper introduces the trend of information flow management in supply chains. After presenting some problems in the study of information sharing, this paper puts forward the agenda of further study.