Study Of Perishable Product's Supply Chain Coordination Based On Buy-back Contract

Under the market environment in which the competition becomes more and more intense and consumers'demands become more and more personalized and diversified, the enterprises are facing more and more demand-uncertainty risks. For better meeting the customers'needs and seeking a long-term development, all enterprises belonging to the same supply chain should collaborate and take some strategies to coordinate their actions. These strategies should make each supply chain member take the impact of its own actions to other member into account and make decisions that are optimal for the whole supply chain system. With these strategies, all the supply chain members will share the market risks and achieve the win-win situation, and the supply chain will operate effectively and develop coordinately. When the competitiveness of the supply chain is enhanced, each member's competitiveness will be enhanced. So, study on the supply chain contract as a coordinating strategy is of practical significance.Firstly, the paper summarized explicitly the current theoretical research on buy-back contract and describes systematically supply chain coordination. Based on classic newsboy model, by including such factors as shortage cost, residual and stock out loss, the paper builds up the single-product supply chain consisting of one supplier and one retailer. By comparing the centralized control mode, dispersion mode and based on buy-back contract mode's model, it has pointed out the difference and the solution of optimal order.Further, the paper study perishable product's supply chain repurchase contract coordination problems based on price-demand. Assuming that market demand is the endogenous variables and retailer decide the retail price, the paper analysis and the profit model of the while model and supply chain members under three modes of the supply chain, get the necessary conditions of the supply chain coordination.Finally, based on promotion cost-sharing, the paper researches buy-back contract. Retailers promoting in the process of product sales promotions as the background, the paper builds the traditional buy-back model, and prove cannot realize supply chain coordination. The paper provides the buy-back contract of promotion cost-sharing. Experiment proves that it can realize supply chain coordination through an example and can make the profit maximization.