Optimizing And Coordinating Of Option Contract Of Supply Chain Based On Genetic Algorithm And Leader Follower Game

Supply chain members usually belong to several relatively independent entities ,which make them primarily concerned with optimizing their own objectives that are not always aligned with the performance needed by the supply chain system ,which result in the poor performance of the supply chain. The information technology and the diversity customer's demand lead the market demands highly uncertain and the supply chain's organization structure more complex, so how to design the coordination mechanism that make the supply chain effective, increase the members'profits, coordinate the supply chain become significant in the practice.Firstly, This paper analyze chain contracts researching on the origin and development evolution process ,and try to introduce options under contract mechanism to research options type of suppliers and retailers pricing strategy production quantity and the corresponding decision-making model, which based on leader flower game theoretical to investigate suppliers and retailers interactions. Given a set of contract parameters, suppliers, vendors accordingly determine its parameters of response function, in order to draw leader flower game solution. Finally, using the genetic algorithm to optimize solution, it is concluded that do the optimal equilibrium. So, it would explain a supply chain contracts in the actual application of a new phenomenon, and solve the new problems which the management practitioners of supply chain implementing supply chain contracts. Thereby it's better for supply chain management practitioners to provide decision support, which have important practical significance.