Study Of B2B E-Supply Chain Coordination Based On Return Contract

Since global manufacture was appeared and developed in 1990s, competition in market among enterprises became more and more fierce. Customers'demand became individuation, diversification and instantaneous. The environment of economy and society is worked a unprecedented change. In this new era of high density information, SCM, as a representative of management world, brings us many new manage concepts and methods of rearranging, designing and optimizing operation flows, far more than some new management tools. SCM takes the place of enterprises to participate in the market competition. Under this special circumstance, the enterprises long for fire-new operation patterns and management methods with higher efficiency, well benefit and lower cost, and actively cultivate an open, competitive and highly efficient market space and a good condition live space with well mechanism. Implementing optimization for SCM in this new environment and setting up reasonable enterprise SCM management platforms, are keys for enterprises to strengthen themselves and enforce their kernel competition capacities, which are very important for enterprises to stand in an invincible position in the severe market competition.This paper studies supply chain coordination in the B2B electronic market. In the supply chain which is composed of a supplier and a dealer, the cost of trade in E-market is lower than that in traditional market, so the supplier and dealer choice to do business in the B2B electronic market. This paper modifies the model of supply chain coordination in traditional market and takes the viewpoint of return contract to study supply chain coordination in seller centric B2B electronic markets.In the third section, assuming the price is exogenous, when the supplier adopts the return contract, it takes the viewpoint of single-period newsboy model to study supply chain coordination in seller centric B2B electronic markets. Compared with traditional markets, the transaction condition in which the supply chain partners join the e-market is satisfied and the supply chain achieves win-win.With an iso-price-elastic demand model, the fourth section takes the viewpoint of return contract to study supply chain coordination in seller centric B2B electronic markets. When the supplier adopts the return contract which contains rebate and penalty policy, the supply chain can be coordinated. The two parties'motivation to join the e-market depends on the rate of commission and coordination mechanism. When the rate of commission which the dealer pays the owner of e-market is lowered to a certain level, the supply chain partners join the e-market and do business with each other, the supply chain achieves win-win.