Researches On Supply Chain Coordination Mechanism Based On Game Theory

The coordination problem has been a major issue in supply chain management (SCM) research. Coordination mechanism is always used to solve non-coordination problems between members of a supply chain. This paper studies the mechanism design for supply chain coordination based on game theory. We give a three-stage supply chain coordination mechanism.The paper firstly reviews the development of supply chain management and discusses why and how to coordinate supply chains. The definition of supply chain coordination is given, then coordination strategies used in related literature paper and the design frame of coordination mechanism in the method of game theory is presented. Based on above discussions, a two-period supply chain coordination mechanism including a manufacture and a retailer is given by designing a contract, and a adverse selection model is built and solved in a special setting. Then we discuss performance of customers in coordination and build a retailer-customer relation model, and design a three-stage supply chain coordination mechanism in which we mainly analyze how the system can be coordinated by the revenue-sharing strategy. Finally, the paper studies the value of supply chain coordination and the appraisement of supply chain coordination.