Value Analysis Of Decision Power In Supply Chain

With the development of IT and the speeding up of globalization, the demand of customer has been trending towards individuality and diversification, the market has changed into Buyer's Marker from Seller's Market. While in the Buyer's Market, the dominant role of the manufacture is also changing. For example, in some traditional industries, the dominant role is transferring or has transferred to the downstream. The phenomena make us recognize the existence of the enterprise-decision-power. This paper, based on quantitative economics, theory of contracts, theory of corporation organization and game theory and normative methods, analyzes systematically and deeply the impact of two enterprise-decision-powers on the supply chain, the operational performances of its members and cooperation strategies between enterprises.In the first part, the paper puts forward the background of enterprise-decision-power, points out the existence of the pricing power, and concentrates on two powers: pricing power and ordering priority. Then it reviews the current theoretical research on enterprise-decision-power.Then, the paper gives a linear model to quantify the pricing power and studies the impact of pricing power on the performance of the supply chain and its members. On the basis of the analysis, the paper further studies the effects of pricing power on the selection of cooperation strategies. Next, the paper discusses the origin the decision power. Aiming at the supply chain consisting of one manufacturer and one retailer in a determinative market, where the retailer owns posterior information of demand, the paper studies the effects of information shared with manufacturer by the retailer on both parties'pricing powers. It proves that information is an important origin of pricing decision power.In the last part, the paper discusses the mechanism of acquiring ordering priority. Aiming at a dispersive supply chain consisting of one manufacturer and two retailers in a determinative market, where one of a retailer acquires the ordering priority through the stock-holding relationship that either the manufacturer hold the stock of the retailer or the retailer hold the stock of the manufacturer, the paper studies the impact of holding proportion stock on the supply chain and the performances of its members.